The Reserve Bank of India issued a direction to Paytm Payments Bank and that decision is to stop taking on new customers with immediate effect.
The Reserve Bank of India issued a statement, the RBI said, “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.”
The Payments Bank began its operations in May 2017 from the Noida branch. In December 2020, the RBI barred HDFC Bank from launching new digital products or services and issuing new credit cards because of recurring tech issues.
In November 2021, Paytm’s IPO failed to make an impact in the stock market debut, putting a pall over other technology companies looking to go public.
