RBI stops Paytm Payments bank from onboarding new customers, orders IT audit

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Photo source: PTI

The move is based on some of the material supervision concerns observed in the bank.

The Reserve Bank of India (RBI) on Friday restrained Paytm Payments Bank from onboarding any new customers. In an official release, the RBI has directed the bank to appoint an audit firm to conduct a comprehensive system audit of its IT systems.

“The Reserve Bank of India today directed Paytm Payments Bank Limited, under Section 35A of the Banking Regulation Act, 1949, to exercise its discretion, among other things, to immediately stop onboarding new customers,” the RBI said.

New customers by Paytm Payments Bank Limited will be subject to specific permission to be approved by the RBI after reviewing the reports of the onboarding IT auditors, read more in the release.

The move is based on some of the material supervision concerns observed in the bank.

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