CURRENT AFFAIRS

Detailed explanation-1: -Directs bank to appoint an IT audit firm to conduct a comprehensive system audit of its IT system. The Reserve Bank of India has directed Paytm Payments Bank to stop with immediate effect the onboarding of new customers.

Detailed explanation-2: -"Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors. This action is based on certain material supervisory concerns observed in the bank,” the RBI said.

Detailed explanation-3: -In March 2022, the RBI ordered a comprehensive audit of Paytm Payment Banks’ IT systems, citing “material” supervisory concerns, and directed it to stop onboarding new customers.

Detailed explanation-4: -“Reserve Bank of India has today, in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers,” the central bank said in a statement.