The Reserve Bank of India (RBI) directed Paytm Payments Bank to stop onboarding new customers immediately. RBI expressed its concerns that the Paytm bank was supposed to appoint an audit firm to conduct a comprehensive system audit of its IT system. It said the action was based on ‘certain material supervisory concerns observed in the bank.’
“Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors. This action is based on certain material supervisory concerns observed in the bank,” the central bank said.
Paytm Payments Bank Ltd is a joint venture between Paytm parent One97 Communications, which holds 49%, and Paytm founder Vijay Shekhar Sharma, who holds the remaining 51%.
It reported revenue of Rs 1,987.45 crore for the financial year 2020-2021 (FY21), down from Rs 2,110 crore in FY20.