The Reserve Bank of India has ordered the Paytm Payments Bank Ltd. not to add any new customers with immediate effects.
The Paytm Payments Bank Ltd. which started as recharge platform in the early 2000’s grew into a quite an empire with multiple features. It was originally started by Vijay Shekhar Sharma who now has major stakes in the parent company One97 Communications Ltd. It got the permission to be a scheduled payments bank in December, which lead its growth to the present position. As a scheduled payments bank Paytm can now accept payments legally without going through any other banking organisation. They can also request and make payments via the Unified Payments Interface of the National Payments Corporation of India and FastTAGS.
The onboarding process of the new customers in these scheduled banks is quick and easy. But they do have to follow the regulations of the Reserve Bank of India. And the organisation has acquired a huge number of customers in the recent times. And that is why the governing body has ordered the halt in addition of new clients. This order comes to force with immediate effect. The organisation will also have to perform a comprehensive system audit of its IT systems by an IT audit firm.
