Action against Paytm Payments Bank Ltd under section 35 A of the Banking Regulation Act, 1949

Last updated: 15 March 2022
Quick Summary
The Reserve Bank of India (RBI) has taken action against Paytm Payments Bank Ltd under Section 35A of the Banking Regulation Act, 1949. Effective immediately, the bank is prohibited from onboarding new customers. This measure is a result of supervisory concerns identified by the RBI. Furthermore, Paytm Payments Bank must appoint an IT audit firm to conduct a thorough system audit. Any future onboarding of new customers will only be permitted after the RBI reviews the IT audit report and grants specific permission.

Reserve Bank of India
Date : Mar 11, 2022


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. 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

Press Release: 2021-2022/1850

FAQ :

The RBI has directed Paytm Payments Bank Ltd to stop onboarding new customers with immediate effect and to appoint an IT audit firm for a comprehensive system audit.

This action has been taken due to certain material supervisory concerns observed in the bank.

The ban on onboarding new customers is effective immediately.

Paytm Payments Bank has been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.

Yes, but only after the RBI reviews the report from the IT auditors and grants specific permission.

 
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