The Reserve Bank of India has asked Paytm Payments Bank Ltd to halt new client onboarding with immediate effect, in accordance with its powers under section 35A of the Banking Regulation Act, 1949. The bank has also been advised to hire an IT audit firm to undertake a thorough System Audit of its IT system. Paytm Payments Bank Ltd’s onboarding of new clients would be subject to particular clearance from the RBI after evaluating the IT auditors’ findings.
This action is being taken in response to material supervisory concerns raised by the bank.
Here is the copy of the Press Note.
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