Home Business RBI Bars Paytm Payments Bank From Onboarding New Customers

RBI Bars Paytm Payments Bank From Onboarding New Customers

by admin

New Delhi: The Reserve Financial institution of India (RBI) on Friday directed Paytm Funds Financial institution to cease from buying new prospects with quick impact due to sure supervisory considerations.

Based on the RBI round, the central financial institution below below Part 35A of the Banking Regulation Act, 1949, barred Paytm Funds Financial institution from buying new prospects and directed the financial institution to nominate an IT audit agency to conduct a complete System Audit of its IT system.

“Onboarding of recent prospects by Paytm Funds Financial institution Ltd will probably be topic to particular permission to be granted by RBI after reviewing a report of the IT auditors,” the central financial institution stated.

“This motion relies on sure materials supervisory considerations noticed within the financial institution,” the RBI stated in an announcement.

Founder and CEO of Paytm Vijay Shekhar Sharma and and One97 Communications Restricted personal Paytm Funds Financial institution, which has over 5.8 crores account holders. Sharma can also be the chairman of Paytm Funds Financial institution.

In December final 12 months, Paytm Funds Financial institution, an affiliate entity of Paytm, had acquired the RBI’s approval to function as a scheduled funds financial institution, serving to it to develop its monetary providers operations.

Earlier, Paytm Funds Financial institution had stated it acquired over 92.6 crore UPI transactions in December, turning into the primary beneficiary financial institution within the nation to realize this landmark.

Based on studies, Paytm Funds Financial institution had 6.4 million financial savings accounts as of March 31, 2021 and over Rs 5,200 crore in deposits. It was additionally the most important UPI beneficiary financial institution, with the bottom technical decline price amongst beneficiary and remitter banks.

Source link

You may also like

Leave a Comment