RBI Directs Paytm Payment Banks To Stop Onboarding New Customers

The RBI under section 35A of the Banking Regulation Act, directed Paytm payment banks to stop onboarding new Paytm customers. The decision was in the view of certain supervisory material concerns observed in banks, on March 11. Furthermore, banks were asked to conduct comprehensive system audit of IT firms, read a RBI release. Notably, a final decision over new Paytm customers will be taken after IT reviews by the RBI.