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HomeBusinessRBI Bans Paytm Payments Bank From Onboarding New Customers

RBI Bans Paytm Payments Bank From Onboarding New Customers

RBI Bans Paytm Payments Bank From Onboarding New Customers

RBI Bans Paytm From Onboarding New Customers

BENGALURU:

The Reserve Bank of India has directed Paytm Payments Bank to stop onboarding new customers with immediate effect, citing “material supervisory concerns observed in the bank.”

The bank has also been directed to appoint an audit firm to conduct a comprehensive audit of its IT system, the Reserve Bank of India said in a statement.

A press release said, “action against Paytm Payments Bank Ltd under section 35 A of the Banking Regulation Act, 1949. The RBI 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 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 report of the IT auditors. This action is based on certain material supervisory concerns observed in the bank,” the press note added.

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