Lagatar24 Desk
New Delhi, March 11: India’s central bank announced on Friday that Paytm Payments Bank has been ordered to stop onboarding new customers with immediate effect, citing material regulatory issues at the bank.
The Reserve Bank of India said in a statement that the bank has also been asked to appoint an audit company to perform a complete assessment of its IT system.
“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, on boarding of new customers,” reads a press release.
“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 release added.
Reserve Bank of India stops Paytm Payments Bank from onboarding new customers pic.twitter.com/wOemAsw21a
— ANI (@ANI) March 11, 2022
