Fino Payments Bank can now open new a/cs as RBI lifts ban

The Reserve Bank of India (RBI) has lifted its ban on adding new customers for Fino Payments Bank. The ban had been imposed by the RBI in May because of non-compliance of operational guidelines, particularly certain accounts having deposits in excess of the allowed amount. The RBI’s operating guidelines for payments banks said the aggregate limit for customer in his/her bank account shall not exceed ~100,000.

“Now we have made the required changes to processes, product and technology, which the RBI has approved and given us the go ahead to open new accounts,” said a Fino Payments bank spokesperson. Fino was not the only payments bank to come under RBI radar. Paytm Payments Bank and Airtel Payments Bank were also barred from adding new customers earlier. The two were accused of misusing the customer base of their wallet and telecom parents respectively in order to create payment bank accounts. Business Standard had earlier reported that Paytm Payments Bank is still not allowed to add new customers. There is uncertainty over when this restriction would be lifted, Paytm founder and Chief Executive Officer Vijay Shekhar Sharma had said. The ban was placed by the RBI in July. Earlier that July, the RBI had lifted the ban on Airtel Payments Bank to onboard new customers. The payment bank had been banned due to allegedly violating Know-Yourconsumer norms including opening accounts without specific or clear consent from the customers in December 2017. Currently there are five payment banks operating in the country — Paytm, Airtel, Fino and Aditya Birla-Idea Payments Bank and India Post Payments Bank.