<p>India's central bank said on Friday it has directed Paytm Payments Bank to stop taking on new customers with immediate effect, citing "material" supervisory concerns observed in the bank.</p>.<p>The bank has also been directed to appoint an audit firm to conduct a comprehensive audit of its IT system, the Reserve Bank of India (RBI) said in a <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR18504603E66DE7F84EB5A02479326FE5152B.PDF">statement</a>.</p>.<p>Paytm Payments Bank would be able to onboard new customers subject to specific permission from the RBI after reviewing the IT auditor's report.</p>.<p>It had received RBI's approval to function as a scheduled payments bank in December, helping it expand its financial services operations.</p>.<p>Billionaire Vijay Shekhar Sharma, the founder of payments firm Paytm, owns 51% of Paytm Payments Bank.</p>.<p>The move comes months after One97 Communications, the payments bank's parent, saw a dramatically underwhelming listing amid concerns around the company's valuation.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>India's central bank said on Friday it has directed Paytm Payments Bank to stop taking on new customers with immediate effect, citing "material" supervisory concerns observed in the bank.</p>.<p>The bank has also been directed to appoint an audit firm to conduct a comprehensive audit of its IT system, the Reserve Bank of India (RBI) said in a <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR18504603E66DE7F84EB5A02479326FE5152B.PDF">statement</a>.</p>.<p>Paytm Payments Bank would be able to onboard new customers subject to specific permission from the RBI after reviewing the IT auditor's report.</p>.<p>It had received RBI's approval to function as a scheduled payments bank in December, helping it expand its financial services operations.</p>.<p>Billionaire Vijay Shekhar Sharma, the founder of payments firm Paytm, owns 51% of Paytm Payments Bank.</p>.<p>The move comes months after One97 Communications, the payments bank's parent, saw a dramatically underwhelming listing amid concerns around the company's valuation.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>