Fino Payments Bank can now open new accounts, RBI lifts ban

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Almost after five months of being banned from opening new accounts or adding new customers, one of India’s first payments banks Fino Payments Bank has been allowed by the Reserve Bank of India (RBI) to resume its stopped services.

Fino Payments BankThe development took place after the bank submitted the compliance report to the central bank.

Since the end of May this year, the bank was unable to enrol new after RBI found it to be non-compliant with the operational guidelines laid down by it.

“RBI has lifted the prohibition on Fino Payments Bank to open new accounts,” said the bank in is official communiqué.

“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 bank added.

In August the RBI found that the bank had deposits in excess of the stipulated amount.

As per RBI’s guidelines for payments banks, a customer can make deposits of up to Rs 1 lakh per account in a year. Such banks are not allowed to accept deposits beyond this limit.

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