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RBI stops Paytm Payments Bank from onboarding new customers

The RBI has also directed Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

New Delhi: The Reserve Bank of India (RBI) on Friday stopped Paytm Payments Bank from onboarding of new customers acting against the fintech based on certain material supervisory concerns.

“Reserve Bank of India has today, in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers,” the central bank said in a press statement.

The RBI has also directed Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

“Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors,” the central bank said.

“This action is based on certain material supervisory concerns observed in the bank,” it added.

Source
UNI

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