RBI directs Paytm Payments Bank Ltd to stop onboarding of new customers

Reserve Bank of India (RBI) has directed Paytm Payments Bank Ltd to stop the onboarding of new customers with immediate effect. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. The RBI took the decision in exercise of its powers under section 35A of the Banking Regulation Act, 1949.

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Key points:

• RBI has advised Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Once the audit is over, RBI will review the reports of IT auditors and based on the reports grant or review its permission for onboarding of new customers.
• 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. This action is based on certain material supervisory concerns observed in the bank.

Important takeaways for all competitive exams:

• Chairman of Paytm Payments Bank Ltd: Vijay Shekhar Sharma;
• MD and CEO of Paytm Payments Bank Ltd: Satish Kumar Gupta;
• Paytm Payments Bank Ltd Headquarters: Noida, Uttar Pradesh.

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