RBI bars Paytm Payments Bank from onboarding new customers

The Reserve Bank of India (RBI) has directed Paytm Payments Bank to stop, with immediate effect, onboarding of new customers.

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

Onboarding of new customers by Paytm Payments Bank will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.

This action is based on certain material supervisory concerns observed in the bank, the RBI said in a statement.

Paytm Payments Bank is one of the payment instruments of Paytm.

Paytm is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021. The company launched Paytm in 2009, as a mobile-first digital payments platform to enable cashless payments for customers giving them the power to make payments from their mobile phones. It started with bill payments and mobile top-ups as the first use cases, and Paytm Wallet as the first Paytm Payment Instrument.

One 97 Communications (Paytm) reported a consolidated net loss of Rs 778.50 crore in Q3 December 2021, higher than net loss of Rs 535.50 crore in Q3 December 2020. Consolidated net sales jumped 88.6% to Rs 1,456.10 crore in Q3 December 2021 over Rs 772 crore in Q3 December 2020.

The scrip shed 0.14% to end at Rs 774.80 on the BSE on Friday.

Powered by Capital Market - Live News