On Friday, the RBI asked Paytm Payments Bank to stop opening new accounts amid “material oversight concerns” seen at the bank.
”The Reserve Bank of India has today, in the exercise of its powers, including under Section 35A of the Banking Regulation Act 1949, ordered Paytm Payments Bank Ltd to stop, with effect immediate onboarding of new customers,’ the central bank said in a statement.
The bank has also been instructed to appoint an IT audit firm to carry out a comprehensive audit of its IT system.
“The onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific authorization granted by RBI after review of the IT auditors report. This action is based on some material oversight concerns seen in the bank,” he said.
Paytm Payments Bank was incorporated in August 2016 and officially started operations in May 2017 from a branch in Noida.
In December 2020, the RBI banned HDFC Bank from launching any new digital products or services and issuing new credit cards until the lender resolved the recurring technical issues.
(With PTI entries)
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Posted: Friday, March 11, 2022, 6:58 PM IST
