Paytm payments banks faces trouble
RBI has barred Paytm Payments Bank from onboarding new customers with immediate effect. RBI cited supervisory concerns as the reason. The bank has been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.
Under pressure
In December last year, Paytm Payments Bank received RBI’s approval to operate as a scheduled payments bank. The bank has been included in the second schedule to the Reserve Bank of India (RBI) Act, 1934.
Since listing, Paytm’s share price has been under immense pressure. Paytm Payments Bank had 64 million savings accounts as of March 31, 2021 and over Rs 5,200 crore in deposits. Vijay Shekhar Sharma, Founder & CEO of Paytm and One97 Communications Limited together own Paytm Payments Bank.
