Team News Riveting
Mumbai, March 11
The Reserve Bank of India (RBI) on Friday asked Paytm Payments Bank to stop opening new accounts amid “‘material supervisory concerns”‘ observed in the institution.
“‘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 RBI 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,” the central bank said.
Paytm Payments Bank was incorporated in August 2016 and formally began its operations in May 2017 from a branch in Noida.
