RBI asks Paytm Payments Bank to stop onboarding of new customers

Mumbai, March 12, 2022

The Reserve Bank of India (RBI) on Friday asked Paytm Payments Bank Ltd to stop the onboarding of new customers after observing "certain material supervisory concerns" in the bank.

"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," a press release from the central bank said.

"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 release added.

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