The Reserve Bank of India has asked Paytm to stop on-boarding of newer customers for its services after an audit revealed irregularities in the company’s Know-Your-Customer (KYC) processes.
Paytm is reportedly renovating its payments gateway to include greater scrutiny of current accounts, due to which no new customers have been added in the last 10 days.
An unnamed company executive told the newspaper that Paytm is modifying its “account opening process to introduce ‘current accounts’ due to which new account creation process has been paused”.
Recently, Paytm Payments Bank CEO Renu Satti has resigned from the role and will now head Paytm’s new retail initiative.
The company will look for a replacement for Satti, who had taken over the CEO role last year. “Renu Satti will be leading the charge as COO of this new (retail) initiative… She has already resigned from Paytm Payments Bank CEO position and the Bank will soon be recruiting a new CEO,” Paytm said in a statement.
Paytm is also developing P2P logistics with a network spread across the country. It will be utilised for intra-city deliveries, according to a PTI report. The firm has already partnered with a large network of local shops, restaurants, pharmacies, and groceries for accepting payments and will soon extend ‘New Retail’ services to them.
“We will work with local restaurants, grocery stores, and pharmacies to enable them for local ordering and delivery,” the report said quoting Paytm founder and CEO Vijay Shekhar Sharma. Local ordering is expected to account for a third of Paytm orders and gross merchandise value (GMV) by 2020, Sharma added.
Whatsapp in the recent few days had said that it would commence payment services soon. But it’s launch in India is still to take off. On Wednesday a report in the ET said Whatsapp has been asked by the government to set up an office and hire a team. Until then, the Facebook owned company may not get the necessary approvals to start a payments business in India.