RBI Asks Paytm Payments Bank to Stop Opening New Accounts

Today, the Reserve Bank of India (RBI) has asked Paytm Payments Bank to stop opening new accounts due to ''material supervisory concerns'' observed in the bank. Reserve Bank of India in its statement said: ''Reserve Bank of India has today, in the 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.” Reserve Bank of India has also ordered the bank to conduct an audit of its IT system. RBI further said: ''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.'' Paytm Payments Bank started its operations in the year 2017 in Noida. It was incorporated in the year 2016. In December 2022, HDFC bank was also restricted by the Reserve Bank of India from launching any new products.