July 6, 2022

The RBI on Friday requested Paytm Bills Financial institution to prevent opening new accounts amid ”subject matter supervisory considerations” noticed within the financial institution.

”Reserve Financial institution of India has lately, in workout of its powers, inter alia, below phase 35A of the Banking Law Act, 1949, directed Paytm Bills Financial institution Ltd to prevent, with rapid impact, onboarding of recent consumers,” the central financial institution mentioned in a commentary.

The financial institution has additionally been directed to nominate an IT audit company to behavior a complete device audit of its IT device.

”Onboarding of recent consumers via Paytm Bills Financial institution Ltd shall be topic to precise permission to be granted via RBI after reviewing file of the IT auditors. This motion is in keeping with positive subject matter supervisory considerations noticed within the financial institution,” it mentioned.

Paytm Bills Financial institution was once included in August 2016 and officially started its operations in Might 2017 from a department in Noida.

In December 2020, the RBI had barred HDFC Financial institution from launching any new virtual merchandise or products and services and issuing new bank cards until the lender resolved ordinary tech problems.

(With inputs from PTI)

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Revealed on: Friday, March 11, 2022, 06:58 PM IST

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