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RBI Bars Paytm Payments Bank From Onboarding New Customers, Orders IT Audit

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system, the RBI said in a release

Paytm

The Reserve Bank of India (RBI) on Friday directed Paytm Payments Bank to stop onboarding of new customers with immediate effect due to certain supervisory concerns.

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system, the RBI said in a release.

“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,” RBI said adding, the action is based on certain material supervisory concerns observed in the bank.

It was recently reported that Vijay Shekhar Sharma-promoted Paytm Payments Bank is likely to apply to the RBI for a small finance bank (SFB) licence by June.

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