RBI Asks Paytm Payments Bank to Stop Opening New Accounts Amid ‘Material Supervisory Concerns’

Mumbai, March 11: The RBI on Friday asked Paytm Payments Bank to stop opening new accounts amid “material supervisory concerns” observed in the bank.

“Reserve Bank of India 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 central bank said in a statement. 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,” it said. RBI Bars Paytm Payments Bank From Onboarding New Customers.

Paytm Payments Bank was incorporated in August 2016 and formally began its operations in May 2017 from a branch in Noida. In December 2020, the RBI had barred HDFC Bank from launching any new digital products or services and issuing new credit cards till the lender resolved recurring tech issues.

(This is an unedited and auto-generated story from Syndicated News feed, Today News 24 Staff may not have modified or edited the content body)