A day after the Reserve Bank of India (RBI) directed Paytm Payments Bank Ltd (PBBL) to stop onboarding new customers on its platform, Paytm said it is taking immediate steps to comply with RBI directions.
Based on certain material supervisory concerns observed in the bank, the central bank on Friday asked Paytm associate PBBL to stop onboarding new customers with immediate effect. The bank was also directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.
“The bank is taking immediate steps to comply with RBI directions, including appointment of a reputed external auditor to conduct a comprehensive system audit of its IT systems. PPBL remains committed to working with the regulator to address their concerns as quickly as possible,” Paytm said in a release.
Paytm said it has been informed that RBI’s action does not impact any existing customers of PPBL, who can continue to use all banking and payment services without interruption.
“All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag, and bank accounts can continue to use these instruments, including debit cards and net banking, for payments,” it added.
It said new users can also sign up on the Paytm app and transact by creating UPI handles and linking them to their bank accounts, or by using third party payment instruments for transactions on the Paytm app.
“Users can not, until further notice, sign up for new PPBL wallets or PPBL savings or current accounts. Paytm believes that the measures imposed upon PPBL will not materially impact Paytm’s overall business,” Paytm said.
The company also clarified that the central bank’s direction will not have any impact on the services that Paytm provides in partnership with other financial services institutions.
“We remain focused on expanding digital payments and financial services to promote financial inclusion in India,” it said.
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