RBI bars Paytm Payments Bank from carrying out transactions starting Feb 29

The Reserve Bank of India (RBI) on Wednesday barred Paytm Payments Bank from accepting fresh deposits and carrying out transactions from February 29 this year, citing “persistent non-compliance” and “material supervisory concerns”.

In March 2022, the regulator barred Paytm Payments Bank from taking in new customers. The company, with
One97 Communications as its parent, was asked at that time to appoint an external auditor to check its information technology systems. “The comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” said RBI in its new order.