The RBI on Friday asked Paytm Payments Bank to stop opening new accounts amid "material supervisory concerns" observed in the bank.
The reason for the RBI punishing the bank was because it violated rules by allowing data to flow to servers abroad and didn’t properly verify its customers, a person familiar with the matter told Bloomberg.
Annual inspections by the Reserve Bank of India (RBI) found that the company’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, Bloomberg said quoting a person privy to the matter.
