On March 11, the RBI said it had asked the payments bank to stop onboarding customers. The regulator also ordered a comprehensive IT system audit. This is the second such ban on a prominent banking institution in the last two years.
The Reserve Bank of India barred Paytm Payments Bank from taking on new customers last week because it allowed its data to flow to servers that were sharing information with China-based entities, Bloomberg reported on Monday.
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The Reserve Bank of India barred Paytm Payments Bank from taking on new customers last week because it allowed its data to flow to servers that were sharing information with China-based entities, Bloomberg reported on Monday.
"RBI's processes are well respected and understandable. Paytm is not a small-time bank, it is now a publicly-listed company," said Paytm’s founder and CEO Vijay Shekhar Sharma.
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He also clarified that the RBI directive does not stop Paytm from onboarding new UPI customers, a channel which is a key customer acquisition funnel for the payments player. However, Sharma did not divulge the exact supervisory concerns that led RBI to issue the directive.
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