Reserve Bank of India (RBI) has asked PayTM Payment Bank to stop new customer registration on account of certain audit & KYC process related observations made by RBI.
You heard it right. PayTM Payment Bank has been asked not to add new clients now. The reasons, it is reported are, some observations made by RBI.
One of the reasons, it is believed, is adherence to KYC norms and the new customer joining process at PayTM Bank requiring certain improvements on that aspect. Though, in certain media coverage, PayTM executives have said that they are in the process of introducing even Current Accounts on the PayTM payment banks system and the technical changes for the same have made them stop adding new clients as of now.
RBI has also advised PayTM payment bank to build better security mechanism for storing and handling sensitive client data. Besides the security framework betterment, PayTM Payments Bank has been also asked to have a separate office and not operate in the premises of One97 Communications, a company which is a shareholder in payment bank of PayTM.
PayTM remains the leader of digital payments in India. On PayTM Payment Bank website, the products listed are : Savings Account, Current Account, Debit & ATM Card, Payments, PayTM Wallet, Food Wallet & Fastag.
PayTM Payment Bank allows you to download the mobile application, do your KYC (Know Your Client) formalities online using AADHAR and start using your PayTM Savings Account. The money that you keep in your PayTM Payment Bank account earns interest at 4% per annum but is paid to you monthly. Like banks, it also allows your ATM withdrawals, internet banking using UPI, IMPS, NEFT etc.
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