In March 2022, which bank did RBI direct to stop onboarding new customers?

Correct option is D

The correct answer is (D) Paytm Payments Bank.

·         In March 2022, the Reserve Bank of India (RBI) directed Paytm Payments Bank to stop onboarding new customers due to supervisory concerns.

·         The RBI also instructed the bank to appoint a certified IT audit firm to conduct a comprehensive system audit of its IT infrastructure.

·         This action was taken to address issues related to data security, governance, and compliance.

Information Booster:

• Paytm Payments Bank is one of India's leading payments banks, offering services like wallet integration, savings accounts, and UPI-based transactions.
• The restriction did not affect existing customers but aimed to ensure compliance with regulatory standards before allowing the bank to onboard new customers again.
• Such actions by the RBI are aimed at protecting consumer interests and maintaining the stability of the banking sector.