RBI bars Paytm Payments from customer onboarding amid concerns

The Reserve Bank of India (RBI) has directed Paytm Payments Bank to stop onboarding new customers due to ‘certain material supervisory concerns’ observed in the bank.

According to Live Mint, the Paytm Payments Bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

The RBI said, “Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing a report of the IT auditors. This action is based on certain material supervisory concerns observed in the bank.”

Paytm Payments previously received over 926 mullion UPI transactions in December, becoming the first beneficiary bank to achieve this landmark in India.

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