Reserve Bank of India (RBI) in its latest order released today on 11th March, 2022 has directed Paytm Payments Bank Ltd to stop, with immediate effect, on boarding of new customers.
The step has been taken in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949. This action is based on certain material supervisory concerns observed in the bank.
Further, Paytm has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. On boarding 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.