RBI Stops Paytm Payments Bank From Onboarding New Customers

The RBI has directed the Paytm Payments Bank to appoint an audit firm to conduct a comprehensive audit of its IT system, the Reserve Bank of India said in a statement.

Onboarding of new customers by Paytm Payments Bank Ltd. will be subject to specific permission to be granted by RBI after reviewing reports of the Income Tax auditors.

"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 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 reports of the IT auditors," the Chief General Manager, Yogesh Dayal said in the press release.

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