Case Brief
RBI, exercising powers under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop onboarding new customers immediately. It also required the bank to appoint an IT audit firm to conduct a comprehensive audit of its IT systems. New customer onboarding will remain subject to specific RBI permission after the audit report is reviewed. The press release says the measure was taken because of certain material supervisory concerns observed in the bank.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Payment entity
- Action Type
- Business restriction