India bars Paytm Payments Bank from taking on new customers, orders IT audit

Paytm Payments Bank, launched Tuesday in Noida, plans 31 branches and 3,000 customer service points in the first year. Photo: Ramesh Pathania/Mint

India’s central bank has barred Paytm Payments Bank, majority owned by billionaire Vijay Shekhar Sharma, from taking on new customers and ordered a comprehensive audit of its IT systems, citing “material” supervisory concerns observed in the bank.

Sharma, founder of payments giant Paytm formally known as One97 Communications, owns 51% of Paytm Payments Bank, while One97 holds the rest.

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