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RBI barred Paytm Payments Bank from adding new customers

RBI has barred Paytm Payments Bank from opening new accounts or adding new subscribers with immediate effect. RBI has also directed Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive audit of its IT system.

This action is based on certain material supervisory concerns observed in the bank. Paytm Payments Bank was incorporated in August 2016 and it formally began operations in May 2017.

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