Bengaluru: The Reserve Bank of India (RBI) has given this direction on Friday. Paytm Payments Bank To stop taking on new customers with immediate effect, citing “material” supervisory concerns seen at the bank.
The bank has also been directed to appoint an audit firm to conduct a comprehensive audit of its IT system, RBI said in a statement.
Paytm Payments Bank will be able to add new customers subject to specific permission from RBI after review of the IT auditor’s report.
It received RBI nod to function as a scheduled payments bank in December, helping it expand its financial services operations.
Billionaire Vijay Shekhar Sharma, founder of payments firm Paytm, holds 51% stake in Paytm Payments Bank.
The move comes months after payments bank parent One97 Communications saw a dramatically hefty listing amid concerns surrounding the company’s valuation.
The bank has also been directed to appoint an audit firm to conduct a comprehensive audit of its IT system, RBI said in a statement.
Paytm Payments Bank will be able to add new customers subject to specific permission from RBI after review of the IT auditor’s report.
It received RBI nod to function as a scheduled payments bank in December, helping it expand its financial services operations.
Billionaire Vijay Shekhar Sharma, founder of payments firm Paytm, holds 51% stake in Paytm Payments Bank.
The move comes months after payments bank parent One97 Communications saw a dramatically hefty listing amid concerns surrounding the company’s valuation.