The Reserve Bank of India (RBI) on Friday directed Paytm Payments Bank Ltd to give up onboarding of new customers with instantaneous effect. The bank has also been directed to appoint an IT audit firm to behavior a complete System Audit of its IT system.
The RBI took the choice in exercise of its powers beneath part 35A of the Banking Regulation Act, 1949.
“Onboarding of new customers through Paytm Payments Bank Ltd will be challenge to specific permission to be granted via RBI after reviewing document of the IT auditors. This motion is based on positive fabric supervisory worries observed in the bank,” RBI said in a statement.
Paytm Payments Bank would be capable to onboard new customers challenge to precise permission from the RBI after reviewing the IT auditor’s report.
It had obtained RBI’s approval to feature as a scheduled repayments financial institution in December, assisting it enlarge its monetary services operations.
Billionaire Vijay Shekhar Sharma, founder of payments association Paytm, owns fifty one per cent of Paytm Payments Bank.
The move comes months after One97 Communications, the repayments bank’s parent, noticed a dramatically underwhelming listing amid concerns round the company’s valuation.
