RBI takes motion towards Paytm Payments Bank – ‘No new clients now; conduct audit’

In a giant improvement, RBI has taken a significant motion towards Paytm Payments Bank. 

In a press launch, RBI knowledgeable about ‘Motion towards Paytm Payments Bank Ltd below part 35 A of the Banking Regulation Act, 1949’.

‘Cease, with rapid impact, onboarding of recent clients’

The central financial institution stated, “Action against Paytm Payments Bank Ltd under section 35 A of the Banking Regulation Act, 1949
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.”

‘Conduct a complete system audit’ 

“The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system,” the discharge by RBI stated.

“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,” as per RBI.

“This action is based on certain material supervisory concerns observed in the bank,” RBI stated.

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