Paytm Payments Bank: Paytm Payments Bank will be allowed to add new customers only after reviewing the central bank’s IT audit reports.
New Delhi: After the RBI directed it to stop opening new accounts, Paytm Payments Bank said on Monday that a report claiming it had leaked data to Chinese firms was “false and sensationalist”. Paytm Payments Bank said it was fully compliant with the data localisation rules of the RBI and the entire data of the bank resides in the country.
A recent Bloomberg report claiming data leak to Chinese firms is false and sensationalist.
Paytm Payments Bank is proud to be a completely homegrown bank, fully compliant with RBI’s directions on data localisation. All of the Bank’s data resides within India.
— Paytm Payments Bank (@PaytmBank) March 14, 2022
Last week, the RBI directed Vijay Shekhar Sharma- promoted Paytm Payments Bank Ltd (PPBL) to stop opening new accounts amid “material supervisory concerns” observed in the bank.
Paytm Payments Bank said that this moratorium will not affect any existing customers of Payments Bank. However, users cannot sign up for Payments Bank’s service until further notice. Meanwhile, existing customers can continue to transact on the Paytm platform.
“All of the Bank’s data resides within the country. We are true believers of the Digital India initiative, and remain committed to driving financial inclusion in the country,” PPBL said in a statement as quoted by news agency PTI.
The Reserve Bank of India (RBI) has ordered an IT audit of Paytm Payments Bank. IT audit means that the company’s IT infrastructure i.e. software is capable of bearing the burden of many customers, what are the flaws in it and why they are coming, all these will be investigated.
According to the statement issued by RBI, Paytm Payments Bank will have to first take RBI’s permission to add new customers, then it can add new customers with itself. The bank will be allowed to add new customers only after reviewing the central bank’s IT audit reports.