Tech

India’s Cenbank bans Paytm Payments Bank from onboarding new customers

FILE PHOTO: A worker walks past the Reserve Bank of India logo at his office in New Delhi
FILE PHOTO: A worker walks past the Reserve Bank of India (RBI) logo at their office in New Delhi, India July 8, 2019. REUTERS/Anushree Fadnavis

March 11, 2022

BENGALURU (Reuters) – India’s central bank said on Friday it had ordered Paytm Payments Bank to stop accepting new customers with immediate effect, citing “material” regulatory concerns observed at the bank.

The bank has also been ordered to hire an auditing firm to conduct a comprehensive audit of its IT system, the Reserve Bank of India (RBI) said in a statement.

Paytm Payments Bank could take on new customers after reviewing the IT auditor’s report, subject to RBI’s express approval.

It had received RBI approval in December to act as a scheduled payments bank, which helped it grow its financial services business.

Billionaire Vijay Shekhar Sharma, founder of payments company Paytm, owns 51% of Paytm Payments Bank.

The move comes months after One97 Communications, the payments bank’s parent company, experienced a dramatically disappointing listing amid concerns over the company’s valuation.

(Reporting by Chris Thomas in Bengaluru; Editing by Krishna Chandra Eluri)

https://www.oann.com/india-cenbank-bars-paytm-payments-bank-from-onboarding-new-customers/?utm_source=rss&utm_medium=rss&utm_campaign=india-cenbank-bars-paytm-payments-bank-from-onboarding-new-customers India’s Cenbank bans Paytm Payments Bank from onboarding new customers

Emma Bowman

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