NEW DELHI: More than three weeks after being asked to appoint a firm to conduct an audit of its information technology (IT) systems, Paytm Payments Bank (PPBL), which processes transactions for Paytm, is yet to comply with the order.
“The RBI (Reserve Bank of India) further informed that the Paytm Payments Bank Limited has not yet appointed the IT audit firm to conduct a comprehensive System Audit of the IT system of the bank,” Bhagwat Karad, Minister of State for Finance, in a written reply told the Lok Sabha on Monday.
On March 11, the banking regulator had barred Paytm Payments Bank from onboarding new customers and ordered it to appoint a firm to conduct a comprehensive System Audit of its IT system.”Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing a report of the IT auditors,” the RBI had said in a circular.
Post the ban, there were reports that said the action was taken after the central bank had found that PPBL’s servers were sharing information with China-based entities that indirectly own a stake in the Paytm Payments Bank. The other reason for the RBI’s decision is said to be PPBL not following adequate know-your-customer (KYC) norms.