Quick Summary
Action against Paytm Payments Bank Ltd under section 35 A of the Banking Regulation Act, 1949
Reserve Bank of India, 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 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.
(Yogesh Dayal)
Chief General Manager
FAQ :
The RBI has taken this action due to material supervisory concerns observed in the bank.
The directive to stop onboarding new customers came into effect immediately.
Paytm Payments Bank has been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.
No, Paytm Payments Bank cannot onboard new customers until the RBI grants specific permission after reviewing the IT audit report.
The RBI issued this directive under section 35A of the Banking Regulation Act, 1949.
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