The report also said that while there were many banking majors interested in the acquisition of Paytm Payments Bank, however, тАШinadequate KYC complianceтАЩ proved to be a big hindrance.
X
The Reserve Bank of India is likely to cancel the banking licence of crisis-hit Paytm Payments Bank, a latest media report said on Monday. According to the Hindu Business Line, the central bank will not only revoke the banking licence pf Paytm Payments but will also appoint an administrator to oversee the daily operations. In case the RBI decides to cancel the licence, this would be the first time in last 20 years that the banking licence of an entity would be revoked in India.
As per the Hindu Business Line report, the┬аRBI┬аhas taken into account diligence failure on part of┬аPaytm┬аPayments Bank on at least four occasions. The report also said that while there were many banking majors interested in the acquisition of Paytm Payments Bank, however, тАШinadequate KYC complianceтАЩ proved to be a big hindrance.
On March 1, One97 Communications (OCL), the parent company of Paytm, declared the approval for discontinuation of numerous inter-company agreements with Paytm Payments Bank. OCL further terminated all existing contracts with the bank. This decision follows the RBIтАЩs imposition of business restrictions on the bank on January 31, citing repeated violations of regulatory norms. Subsequently, the central bank prohibited Paytm Payments Bank from accepting new deposits and engaging in credit transactions after February 29, although the deadline was later extended to March 15.
aniltikotekar4sme.com 