Paytm Payments Bank has approximately 42 million accounts. | Photo Credit: Representative Image

New Delhi: In a major relief to Paytm Payments Bank, the Reserve Bank of India (RBI) has given a go ahead to restart its business and open fresh e-wallets and accounts, ET reported. Earlier last year, the RBI blocked Paytm Payments Bank to open new accounts and e-wallets after the One97 Communications and Vijay Shekhar Sharma co-owned firm violated know-your-customer (KYC) norms.

Paytm Payments Bank failed to comply with the rules of maintaining an upper limit of Rs 1 lakh per account at the end of day and has been unable to sustain a net worth of Rs 100 crore, Times of India said in a report citing RBI’s response to an RTI filed by the newspaper. Now with the permission from the RBI, Paytm Payments Bank has been planning to begin the KYC process for respective customers associated with its wallets and bank accounts, ET reported citing an unidentified spokesperson of the company.

“Paytm Payments Bank is on a mission to facilitate the last-mile delivery of banking services to every Indian. It also envisions catalysing the digital adoption and acquainting more people with the touch-of-a-button experience. believe it is going to help in the formalisation of our economy and bring about the much-needed real financial inclusion,” ET report said citing Satish Gupta, CEO, Paytm Payments Bank.

Here’s why RBI blocked Paytm Payments Bank from opening new accounts and e-wallets

Paytm Payments Bank has approximately 42 million accounts and is aiming at an ambitious target of 100 million by the end of 2019, the newspaper report said citing company spokesperson, adding, the RBI didn’t imposed any fine on Paytm Payments Bank.

However, following RBI’s obstruction to open new accounts and e-wallets, Paytm Payments Bank removed Renu Satti from the position of CEO and hired Satish Gupta. Satish Gupta is a veteran banker with about 32 years of experience in State Bank of India. He has also served as Chief Project Officer with National Payments Corporation of India (NPCI).