Heena Sharma Blog

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. The RBI also expressed unhappiness at the close relations between Paytm founder Vijay Shekhar Sharma’s One97 Communications and the entity that runs Paytm Payments Bank (PPB). 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 More Business Standard

Taking its digital payments platform to the next level, One97 Communications Limited, which owns the Paytm brand, is experimenting with facial recognition technology to unlock the payments application. This is expected to enhance the security of accounts, said source in the company privy to this development. To begin with, the Vijay Shekhar Sharma-owned company is testing the face login feature on its Android beta app, the person said. This will be an important security update for Paytm users that is designed to prevent phishing attacks by providing an additional security layer of biometric security, said a security expert. ALSO READ: Paytm's losses rise by almost 80% on the back of massive expansion plans The tool would also remove the complexity of resetting passwords to log in to accounts as there are instances when users accidentally share their account details with others and are mostly not comfortable with resetting their password. Reports have said that th...