statement comes after reserve Bank of India (RBI) on March 11 barred it from adding new customers.
The company assured the customers that it is fully compliant with the data localization norms of the Reserve Bank of India and that the entire data of the bank remains in the country.
In a tweet, Paytm Payments Bank said: “A recent Bloomberg report claiming data leaks to Chinese firms is false and sensationalized. Paytm Payments Bank is proud to be a completely domestic bank, following the RBI’s stand on data localization. Fully complies with the instructions. All bank data remains within India.”
A recent Bloomberg report that claims data leaked to Chinese companies is false and sensational. Paytm Payments Bank is… https://t.co/LifBR7q27A
— Paytm Payments Bank (@PaytmBank) 1647254190000
In a report, news agency Bloomberg had said that the annual inspection by the RBI found that Paytm Payments Bank’s servers were sharing information with China-based entities that indirectly hold stake in the firm.
Paytm is backed by China’s Alibaba Group Holding and its affiliate Ant Group.
The Reserve Bank, without elaborating further, had ordered a comprehensive audit of the company’s IT systems, citing “material” supervisory concerns observed at the bank.
In response, Paytm Payments Bank had assured its users that it was taking immediate steps to comply with RBI’s directions, including appointment of a reputed external auditor, to conduct a comprehensive audit of its IT systems. .
“PPBL remains committed to working with the regulator to address their concerns at the earliest,” PPBL said in a statement.
It also said that new users can sign up on the Paytm app, and a) create UPI handles and link them to their bank accounts, or b) use third party payment instruments to transact on the Paytm app. can.
“Users may not, until further notice, sign up for a new PPBL Wallet or PPBL Savings or Current Accounts. Paytm believes that the measures imposed on PPBL will not affect Paytm’s overall business,” the statement said. ”
However, reports shook investor sentiments as shares of One97 Communications – Paytm’s parent company – plunged nearly 13 per cent in today’s trade on BSE. It touched an all-time low of Rs 672 during the day but pared some losses and finally closed at Rs 675 on BSE.
Currently, the stock is trading 65 per cent down from its all-time high of Rs 1,961.05, while the stock is down 49 per cent on a year-on-year basis.
(with inputs from agencies)