Connect with us

Hi, what are you looking for?


Paytm Payment Bank barred from onboarding new customers 

A complete system audit of the bank’s IT system has also been ordered.

Paytm Payment Bank barred from onboarding new customers

Due to possible gaps in its technology systems, the central bank barred SoftBank-backed Paytm Payments Bank from adding new customers on Friday, potentially stifling the fintech’s small-finance ambitions and further riling investors skeptical of the fintech’s ability to boost earnings after an expensive initial share sale.

Since its formation in May 2017, the banking authority has taken action against Paytm Payments Bank three times. For the second time, it has been forbidden to open new accounts.

Paytm Payments Bank has joined a growing list of financial institutions and lenders that have been fined for systemic flaws, including MasterCard, Diners Club, American Express, and HDFC Bank. In India, where transactions are increasingly done digitally, the banking authority is keen on constructing a failsafe payment system.

Paytm Payment Bank barred from onboarding new customers
Image: Sanjay Rawat

A complete system audit of the bank’s IT system has also been ordered. Paytm Payments Bank’s onboarding of new customers would be subject to RBI approval following the examination of IT auditors’ reports.

The central bank also issued a show-cause notice to Paytm Payments Bank on July 29, 2021, alleging that the company violated the Payment and Settlement Systems Act, 2007, by submitting false information to the RBI confirming the completion of One97 Communications’ transfer of the Bharat Bill Payment Operating Unit business to PPBL. Paytm Payments Bank has been fined Rs 1 crore by the RBI.

Paytm Payments Bank is a joint venture between Vijay Shekhar Sharma, the founder of Paytm, and One97 Communications, the parent company of Paytm. Sharma personally owns 51 percent of the bank.

Advertisement. Scroll to continue reading.

According to its website, it began operations in 2017 and claims to have 60 million bank accounts with 4 lakh new customers added every month. It is also one of the main issuers of the FASTag system for highway toll payments, and has issued over 8 million FASTag units so far.

Hrushikesh Pachbudhe is a News Analyst and Author at Empire Weekly. He is an MBA aspirant and a finance enthusiast. He is a firm believer of “Quality over quantity”, strives towards improving himself every day, and is always eager to learn. He is an incredibly analytical person, yet his desire to explore his creative side led him to work in content writing and development. Amongst his peers, he is known for his punctuality, discipline, and reliability. He aspires to become a successful investor and tackle bigger responsibilities and challenges. Some of his hobbies involve playing football, listening to music, and weight training.

Click to comment


  1. Pingback: Founders Who Have Been Fired from Their Own Businesses

  2. Prince Yadav

    April 2, 2022 at 8:10 am

    Nice 🙂

    We should support EW!

  3. Susan

    April 2, 2022 at 2:35 pm

    Times of India, Hindustan Times, and others are posting/publishing trash in the name of news. Ujwal and his startup Empire Weekly is the one we need to start visiting for reading organic and good news and articles.

  4. Mark

    April 4, 2022 at 3:40 am

    Nice content 🙂

  5. David USA

    April 4, 2022 at 6:27 pm


  6. Devi Vishwakarma

    April 5, 2022 at 12:53 pm

    Nice article 🙂

  7. Marry Bellavita (Fitntech Entrepreneur)

    April 5, 2022 at 3:08 pm

    PayTM gave me good returns and is a good stock

  8. Vinna Mathew

    April 5, 2022 at 6:38 pm


  9. Usain

    April 5, 2022 at 9:25 pm


  10. Anish

    April 6, 2022 at 1:40 am


  11. Mia

    April 6, 2022 at 2:18 am

    Loved IT

  12. William

    April 6, 2022 at 2:56 am


  13. Bruce

    April 6, 2022 at 7:49 am

    Love from USA


    April 6, 2022 at 11:25 am


  15. Mia CHADWICK

    April 6, 2022 at 12:13 pm

    Amazing site

  16. Paul

    April 7, 2022 at 4:46 pm


  17. Umang Sharma

    April 7, 2022 at 7:45 pm

    Sahi hai bhai

Leave a Reply

Your email address will not be published. Required fields are marked *


Latest News

Best No Code App Builders

Digital Transformation

In the ever-evolving landscape of technology, the rise of No Code App Builders stands as a testament to the democratization of app development. Gone...

11 Best AI Image Enhancer & Upscaler Tools (February 2024) 11 Best AI Image Enhancer & Upscaler Tools (February 2024)

Artificial Intelligence

In a world flooded with digital photos, the demand for high-quality images is ever-growing. Whether you’re a social media enthusiast or a professional in...

Ram Mandir Ayodhya Ram Mandir Ayodhya

India News

Witness history unfold in Ayodhya as PM Modi inaugurates the majestic Ram temple, marking a monumental moment in Indian heritage.


You May Also Like

Mystery and History

The great imaginative minds have given birth to some of the most legendary and eye-popping hybrid mythological creatures.

Empire Weekly Exclusive

Because of the character's widespread appeal, Iron Man has appeared in multiple comics, television series, and films.

India News

Saweety Boora produced a superb show against her Chinese opponent and was declared winner by points as India won both the finals scheduled for...

Empire Weekly Exclusive

Tom Cruise is known as a Golden Globe-winning celebrity and a famous producer. By the 1990s, Cruise had established himself as one of Hollywood's...