Due to regulatory concerns, the Reserve Bank of India (RBI) has stopped Paytm Payments Bank from onboarding new customers with immediate effect.
The bank has been ordered to hire an IT audit firm to undertake a full system audit of its IT system, according to the banking regulator.
According to a press release, "Paytm Payments Bank Ltd is being sued under Section 35 A of the Banking Regulation Act of 1949. The Reserve Bank of India (RBI) has asked Paytm Payments Bank Ltd to suspend onboarding new customers with immediate effect, in accordance with its powers under section 35A of the Banking Regulation Act, 1949."
"A complete System Audit of the bank's IT system has also been ordered. Paytm Payments Bank Ltd would be required to obtain explicit approval from RBI after examining the IT auditors' report before onboarding new clients. This action is being taken in response to some serious supervisory concerns that have been raised in the bank "the press release stated.
Latest Videos
