Paytm will soon resume opening new payment bank accounts after receiving a clearance from the Reserve Bank of India. Last year in June, RBI imposed a ban on the payment bank which barred it from opening new accounts. The decision was a result of discovered irregularities in the functioning.
Since the ban, Paytm Payment Banks had stopped opening new accounts. When a user tried to open an account, the screen on the app displayed a message saying that the RBI had directed it not to open any new bank accounts. However, as the new year begins, the message has been removed and replaced by original Paytm Payment Bank’s tagline. Clearly, the new year has ended the longtime wilderness the company has been facing.
Satish Gupta, Paytm Payments Bank’s Chief Executive Officer talked to Economic Times and said, “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.”
After RBI barred Paytm from opening new accounts in June, CEO Renu Satti resigned on 28th July. The ex-CEO was replaced by Satish Gupta. As per the current metrics, Paytm Payments Bank has a 42 million customer base. The total deposits account to INR 10.7 crores which means that an average customer has only INR 2.5 in the account. In 2018, the payment bank has recorded a net loss of INR 20 crores.
Paytm’s competitors Airtel Payments Bank and Fino Payments Bank has also been barred from opening new accounts and have been lacking behind in numbers. With Paytm getting the clearance and being back in business, it is speculated that the firm will keep up to the hope it had promised when it started operations. Satish Gupta, a former NPCI executive may turn around its fortunes.