RBI bars Paytm Payments Bank from acquiring customers, calls for IT audit

The ban on customer acquisition shall cripple business growth for Paytm PB, which is targeting to add half a billion customers to its fold

The Reserve Bank of India (RBI) has barred Paytm Payments Bank (Paytm PB) from onboarding new customers with immediate effect because of certain supervisory concerns.

Furthermore, the banking regulator has directed Paytm PB to appoint an IT audit firm for conducting a comprehensive system audit of its IT system. Paytm PB will need specific permission from the RBI to restart the onboarding of customers following a review of the audit.

The RBI said the action is based on certain material supervisory concerns observed in the bank, without divulging details. Vijay Shekhar Sharma, founder & CEO of Paytm, and One97 Communications