Publish Date: | Fri, 11 Mar 2022 06:39 PM (IST)
Reserve Bank of India has taken a big step against Paytm Payments Bank. RBI today (Friday) has banned Paytm’s bank from adding new customers. In a press release, the central bank has informed about the action taken against Paytm Payments Bank Limited under Section 35A of the Banking Regulation Act, 1949.
audit order
At the same time, the Reserve Bank of India has ordered Paytm Payments Bank to get its IT system audited. For this an IT audit firm has been asked to be appointed. According to RBI, onboarding of new customers by Paytm Bank will be subject to specific permission after review of the report of IT auditors.
What is IT Audit?
Let us tell you that a team of IT audit will examine the system of Paytm Payments Bank. Will try to find out how many customers their system can handle. What is the problem there. If the company fails the audit, then this ban will remain in place.
Reserve Bank of India stops Paytm Payments Bank from onboarding new customers pic.twitter.com/wOemAsw21a
— ANI (@ANI) March 11, 2022
plan to start small finance bank
At the same time, according to media reports, Paytm Payments Bank has made a plan to start a small finance bank. Around May-June this year, one can apply for the license with the Reserve Bank. By then Paytm Bank will complete five years. Please tell that Payments Bank can apply for Small Finance Bank only when they have completed 5 years. The promoter of Paytm Payments Bank is Vijay Shekhar Sharma. At the same time, Paytm is also planning for business loans. After getting the SFB license, the company will discuss the loan business with the partners.
Posted By: Shailendra Kumar