Fino Payments to enroll fresh customers after RBI lifts ban

Last Updated: Wed, Oct 24, 2018 15:09 hrs
RBI (Reuters image)

New Delhi: Fino Payments Bank in a statement released on Tuesday said that it could enroll new customers and open accounts after the regulator lifted a 5-month old ban.

"RBI has lifted the prohibition on Fino Payments Bank to open new accounts," said an official statement from Fino.

"It may be noted that RBI had prohibited Fino Payments Bank from opening any new accounts on account of violations of certain licensing conditions and operating guidelines. However, no restrictions were placed by RBI on the bank for servicing existing customers," the statement added.

Five months ago, the Reserve Bank banned Fino from enrolling new customers owing to non-compliance with operational guidelines.

The RBI’s operating guidelines for payments banks suggests that customers can make deposits of up to Rs 1 lakh per account in a year. Payment banks such as Fino cannot accept deposits beyond this limit.

According to the RBI's latest data, 31 payment banks including Paytm, Airtel Payments bank cannot onboard new customers. After an observation on June 20, Paytm Payments Bank cannot on-board newer customers.

Other payments banks that have started operations are India Post Payments Bank Ltd, Aditya Birla Idea Payments Bank and Jio Payments Bank.

Fino Payments Bank, started as a remittance service provider and received a nod from the regulator to start a payments bank in March 2017.

Operations had begun in September after launch in July last year.

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