Reserve Bank of India (RBI) has banned One 97 Communications’ wholly-owned subsidiary -- Paytm Payments Bank from onboarding new customers with immediate effect. The RBI has also directed Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive system audit of its IT system. 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 will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.
Reserve Bank of India has, in the exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank to stop, with immediate effect, onboarding of new customers.
One 97 Communications (Paytm) is India's leading digital ecosystem for consumers as well as merchants.
