Paytm Payments Bank, which handles digital transactions for fintech platform Paytm, on Monday dismissed a report claiming it had leaked information to Chinese companies as “false and sensationalist”.
“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,” tweeted Paytm Payments Bank.
A current Bloomberg report claiming information leak to Chinese companies is fake and sensationalist.
Paytm Payments Bank is proud to be a very homegrown financial institution, absolutely compliant with RBI’s instructions on information localisation. All of the Bank’s information resides inside India.
— Paytm Payments Bank (@PaytmBank) March 14, 2022
Last week, the RBI had banned Paytm Payments Bank from onboarding any new clients. In a press release Friday, the central financial institution stated that it had taken the motion on the idea of sure “material supervisory concerns”, however didn’t element the issues.
Onboarding of recent clients by Paytm Payments Bank Ltd can be topic to particular permission to be granted by RBI after reviewing report of the IT auditors,” the RBI famous.
In its assertion, Paytm Payments Bank had stated that it was working with the banking regulator to get the issues addressed. “We shall notify when we recommence the opening of new accounts after obtaining RBI approval. We shall notify when we recommence the opening of new accounts after obtaining RBI approval,” it stated.
Meanwhile, shares of One 97 Communications Ltd —the father or mother firm of Paytm — hit a brand new all-time low of Rs 672 per share after falling 12% in early commerce on Monday. At the identical time, the 50-stock benchmark index Nifty was down 0.08% at 16,617.35 factors.
One97 Communications owns 49 per cent fairness curiosity in Paytm Payments Bank, whereas the remainder 51 per cent is owned by Vijay Shekhar Sharma.
For the year-ended March 31,2021, Paytm Payments Bank, which has the most important scale amongst all fee banks, had recorded internet revenue of Rs 17.88 crore on gross sales of Rs 1,987.84 crore, in line with Paytm’s IPO prospectus.
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With inputs from TheIndianEXPRESS
