The City Headlines
The Reserve Bank of India has barred Paytm Banks system from onboarding new customers. RBI reportedly took the decision on Friday and banned Paytm Bank from onboarding the new customers.
This strict decision has been taken exercising the powers under section 35A of the Banking Regulation Act.
RBI in a statement reportedly said, “Reserve Bank of India has today, in the 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.”
Not only this the Reserve Bank of India has also given directions to Paytm to hire an IT audit firm to conduct a system audit.
In its orders, RBI said, “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 the report of the IT auditors.”
