RBI Directed Paytm Payments Bank Ltd to stop, with immediate effect, the onboarding of new customers.
The Reserve Bank of India (RBI) has directed the Paytm Payments Bank Ltd to stop, with immediate effect, the onboarding of new customers. No onboarding of new customers unless permission is granted by RBI.
Read the official announcement of RBI
Reserve Bank of India has today, in the 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 bank has also been directed 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 the report of the IT auditors.
This action is based on certain material supervisory concerns observed in the bank.
Paytm Payments Bank is an Indian payments bank, founded in the year 2015 and headquartered in Noida. In the year 2015, it received the license to run a payments bank from the Reserve Bank of India. It was launched in November 2017
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