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RBI directs Paytm Payments Bank to stop onboarding new customers

by TLN Team March 12, 2022March 12, 2022
written by TLN Team March 12, 2022March 12, 2022
RBI directs Paytm Payments Bank to stop onboarding new customers

The Reserve Bank of India (RBI) on March 11 directed Paytm Payments Bank to stop onboarding of new customers.

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system, the RBI said in a release.

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. This action is based on certain material supervisory concerns observed in the bank,” the RBI said.It is not immediately clear what are the exact reasons that invited the RBI action. The RBI said the action was based on certain material supervisory concerns observed in the bank.

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