Post RBI order, Paytm Bank says existing customers can still use its banking services

Paytm Payments Bank Ltd (PPBL) said that all its existing customers can seamlessly use all its banking services. The statement comes a day after the Reserve Bank of India (RBI) asked Vijay Shekhar Sharma-led Paytm Payments Bank not to onboard new customers until a comprehensive audit of its information technology system is done.

In a tweet, Paytm Payments Bank said it's taking all the steps to comply with the RBI orders.

"Dear customers, we value your relationship with us. We are taking all steps to comply with the RBI directions. Our existing customers can continue to seamlessly use all our banking services. The bank is taking immediate steps to comply with RBI directions, including the 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," the bank said in a statement.

The central bank, in its latest order issued on Friday, had said its action against the bank is based on “certain material supervisory concerns" observed in it.

Vijay Shekhar Sharma owns 51 per cent of Paytm Payments Bank.

The Paytm Payments Bank has been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system, the RBI order said.

“Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing a report of the IT auditors," the central bank said.

Incorporated in August 2016, Paytm Payments Bank had started operations in May 2017. It opened its first branch in Noida. Paytm Payments Bank received the RBI nod to operate as a “scheduled payments bank" in December 2021, which helped it expand its financial services operations.