The Reserve Bank of India (RBI) told Paytm Payments Bank to halt acquiring new users on its network with immediate effect in an official order issued on Friday. A complete System Audit of the bank’s IT system has also been ordered. According to the statement, the move is based on “some substantial supervisory issues discovered in the bank.”
“Paytm Payments Bank Ltd’s onboarding of new clients would be subject to particular approval from RBI, which will be given after reading the IT auditors’ report,” the central bank stated in an official notice.
As of March 31, 2021, Paytm Payments Bank had 64 million savings accounts and approximately Rs 5,200 crore in assets. It was also the leading beneficiary bank for the Unified Payments Interface, with the lowest percentage of technical decrease among beneficiary and remitter banks.
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