RBI directs Paytm Payments Bank Ltd to stop onboarding of new customers

• The Reserve Bank of India has directed Paytm Payments Bank Ltd to stop the onboarding of new customers with immediate effect.
• RBI has taken this step under the power conferred to it under section 35 A of the Banking Regulation Act, 1949.
• RBI has advised Paytm Payments Bank to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Once the audit is over, RBI will review the reports of IT auditors and based on the reports grant or review its permission for onboarding of new customers. 

Points to remember:

1. RBI has stopped which bank recently from onboarding new customers?
2. RBI has barred aytm Payments Bank Ltd to stop the onboarding of new customers under which section of which act? section 35 A of the Banking Regulation Act, 1949.

Source: RBI