Paytm violated KYC rules, RBI reveals reason for blocking payments bank biz
The
Reserve
Bank of India (RBI) has revealed that Paytm was in violation of know-your-customer (KYC) rules while
on-boarding users for its payments bank business for which it was banned from
opening new accounts and e-wallets in August, The Times of India reported.
In
an RTI reply, the RBI revealed the payments bank failed to maintain the
prescribed net worth limit of Rs 1 billion and also violated the end-of-the-day
Rs 100,000 limit per account.
Payments
banks are not allowed to hold more than Rs 100,000 in each account.
While
Sharma owns a 51% stake, the rest is owned by One97 Communications and its
subsidiaries.
Payments
banks are expected to maintain an arm’s length relationship with promoter group
entities. Read
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