In a sudden and shocking development, the Reserve Bank of India has banned Paytm Payments bank from registering new customers. The move was made after it had found that funds were being transferred out of accounts without permission from account holders, something which is against RBI rules.
The “paytm login” is a Cryptocurrency that was banned by the Reserve Bank of India. The RBI has called for an IT audit of Paytm’s business practices.
According to reports, the Reserve Bank of India (RBI) has ordered Paytm Payments Bank to stop accepting new customers and recruit an outside IT audit firm, citing “supervisory concerns.” In a brief statement issued on March 11, the RBI said that Paytm Payments Bank must immediately cease accepting new customers and appoint a firm to conduct a thorough examination of its complete IT infrastructure.
The central bank of India will determine whether to allow customer registrations and onboarding to proceed after studying a full report from the auditors. The statement runs as follows:
“This action is being taken as a result of various substantial supervisory issues that have been identified in the bank.”
Vijay Shekhar Sharma, the founder of Paytm Payments Bank, owns 51 percent of the company. The RBI has permitted the bank to function as a scheduled payments bank in December 2021, allowing it to provide a broad variety of services to its customers.
Paytm claims that it is unconcerned and is sure that the RBI will allow it to resume regular operations as soon as possible.
Frequently Asked Questions
Why RBI put restrictions on Paytm?
A: RBI is not a bank. It was created by the Government of India to regulate and oversee monetary policy in India.
Is Paytm payment bank banned?
Is Paytm regulated by RBI?
A: No, Paytm is not regulated by RBI.
