The Reserve Bank of India released a statement explaining that this action is based on certain material supervisory concerns observed in the Paytm<\/a> Payments Bank.\u00a0 While curbing new PayTM customers, it also appoints an IT audit firm to perform a comprehensive system audit of its IT system.<\/p>\n The statement reads, “The bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.”<\/p>\n The RBI further declared that the Paytm Payments Bank will be granted permission to onboard new customers only after reviewing reports of the IT auditors. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors.”<\/p>\n The apex bank has stated in a press release that action against Paytm Payments Bank Limited under section 35 A of the Banking Regulation Act, 1949, the RBI has in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers.<\/p>\n The press release further went on to say, “The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing the report of the IT auditors. This action is based on certain material supervisory concerns observed in the bank.”<\/p>\n Paytm Payments Bank was incorporated in August 2016 and formally began its operations in May 2017 from a branch in Noida. In December 2020, the RBI had banned HDFC Bank from launching any new digital products or services and administering new credit cards till the lender settled recurring technical problems.<\/p>\n Paytm is an Indian multinational technology company that specializes in digital payment system, e-commerce, and financial services, based in Noida.<\/p>\n You might also want to read https:\/\/www.hamslive.com\/news\/2022\/03\/12\/muhammad-ali-jinnah-among-200-eminent-persons-at-rss-exhibition-in-ahmedabad\/<\/a><\/p>\n