The Reserve Bank of India has decided to set the terms of reference for an independent technology audit of Paytm Payments Bank. This decision came into effect after the regulator has barred the onboarding of new customers for suspected violations of customer acquisition and privacy rules which might have included possible data flow to Chinese origin entities.
RBI has said that the onboarding of new customers by Paytm Payments Banks will be subject to the approval given by the central bank after reviewing the report of the IT auditors. Further, the central bank added, “This action is based on certain material supervisory concerns observed in the bank.”
The Reserve Bank of India has also said that before lifting the curbs, it will ask the Paytm Payments Bank to make the required process, KYC, and IT-related alteration based on the reports of the audit.
Vijay Shekhar Sharma, Founder of Paytm said that the RBI has imposed restrictions pertaining to technology-related concerns.
