Paytm Payments Bank has had a troubled relationship with its regulator, the Reserve Bank of India. In 2018, the RBI had stopped the bank from adding new customers after observations about the process the company followed in acquiring new customers, its adherence to know-your-customer (KYC) norms, and the way it internally stored customer data. The ban had been lifted 6 months later. In October, 2021, the RBI had imposed a monetary penalty on Paytm Payments Bank for violation of certain rules. This was after an RBI examination of the bank's application for issue of final Certificate of Authorisation (CoA). In March 2022, RBI had directed Paytm Payments Bank to stop onboarding new customers.