RBI orders comprehensive System Audit of Paytm Bank's IT system
MUMBAI, Mar 11 (The CONNECT) - Reserve Bank of India has today directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers following certain material supervisory concerns.
The order is under section 35A of the Banking Regulation Act, 1949, RBI said and did not elaborate.
RBI also directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system, Yogesh Dayal, CGM of the central bank said.
Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.
This action is based on certain material supervisory concerns observed in the bank.
The Section 35A of the Banking Regulation empowers the RBI “to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company; or to secure the proper management of any banking company generally”.