The Reserve Bank of India (RBI) Friday coordinated Paytm Payments Bank Ltd to quit onboarding new clients with quick impact and lead a far-reaching review of its IT framework, referring to “material administrative worries”.
Onboarding of new clients by Paytm Payments Bank will be dependent upon explicit authorization to be allowed by RBI after looking into the report of the IT examiners, the RBI said.
“This activity depends on specific material administrative worries saw in the bank,” the national bank said.
“The RBI has, today, in the activity of its powers, bury alia, under Section 35A of the Banking Regulation Act, 1949, guided Paytm Payments Bank to stop, with prompt impact, onboarding of new clients,” it said. The bank has additionally been coordinated to designate an IT review firm to lead a complete System Audit of its IT framework, the RBI said.
“This activity depends on specific material administrative worries saw in the bank,” the national bank. Paytm Payments Bank got the endorsement from the RBI in 2017.
For the year finished March 31, 2021, Paytm Payments Bank, which has the biggest scale among all instalment banks, had recorded a net benefit of Rs 17.88 crore on deals of Rs 1,987.84 crore, as indicated by Paytm’s IPO plan. One97 Communications claims 49% value revenue in Paytm Payments Bank, while the rest 51% is possessed by Vijay Shekhar Sharma.