Mumbai-based Fino Payments Bank has been directed by RBI (Reserve Bank Of India) to halt its new account opening functions until it adheres to the RBI guidelines on deposit limits. India’s central bank mandates the payments banks to restrict deposits in the accounts to ₹1 lakh.
As per a press release from Fino Payments Bank, “It was observed that a few Fino Payments Bank accounts had deposits in excess of Rs 1 lakh, which is the stipulated amount. In this context, the RBI directed Fino Payments Bank to put in place appropriate process to address the operating guidelines on deposit limits in customer accounts. In view of this development, RBI advised us not to open new accounts till the upgraded processes are in place.”
This development is set to hinder the goals of the payments bank to expand its customer base across the country. In order to approach its target, Fino Payments Bank had earlier announced a plan to raise ₹300 crores by October-November this year.
While it hinders its goals of expanding its customer base, existing accounts of its customers will not be affected, as they continue to do banking transactions like deposits, withdrawals, money transfer, bill payments, and third-party offering without any inconvenience.
Fino Payments Bank is one of the latest entrants in the list of operating payments banks in the country. It started it operation on 4th April 2017. It started its operations with 410 branches and more than 25,000 banking points.
It currently has a customer base of 1 million and its plans to expand this figure to 3 million customers by March next year.