Paytm Payments Bank Seeks External Auditors Amid RBI Crisis
- ByStartupStory | February 12, 2024
Paytm Payments Bank has reportedly floated a request for proposal (RFP) for external auditors amid the ongoing crisis following restrictions imposed by the Reserve Bank of India (RBI). According to NDTV Profit, the bank is seeking an audit of its compliance and know-your-customer (KYC) processes. The RFP has been extended on a restricted basis to external auditors and is not available in the public domain.
The bank aims to demonstrate its compliance with RBI regulations through the external audit, as per sources familiar with the matter. Paytm Payments Bank was recently barred by the RBI from taking deposits, credits, or processing top-up transactions in its customer accounts. The bank has also been restricted from processing other banking services like UPI facilities and funds transfer due to ‘persistent non-compliances’.
In response to these developments, Paytm announced the formation of a group advisory committee to address compliance and regulatory issues. The committee will be chaired by former SEBI chairman M Damodaran, with MM Chitale and R Ramachandran as the other members. Paytm founder and CEO Vijay Shekhar Sharma has also reportedly met with the RBI and Finance Minister Nirmala Sitharaman to discuss the central bank’s actions.
Shares of Paytm have plummeted since the announcement of the RBI’s restrictions, with the fintech giant’s shares ending Friday’s trading session 6.09% lower at INR 419.85 on the BSE. Amid these challenges, the RBI is reportedly considering cancelling the operating license of Paytm Payments Bank next month.
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