Claim Over Paytm Payments Bank
Recently Paytm Payment Bank has been directed by the Reserve Bank of India to stop the onboarding process for new users. This was done over “certain material supervisory concerns observed in the bank.” As per the reports of Bloomberg, Bank has taken a step that was against the rules of RBI. Reports revealed that Paytm’s bank was sharing some information with unknown Chinese entities. It is also known that those entities own a stake in Paytm Payments Bank.
RBI To Bank
As per the RBI’s directive “in exercise of its power, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers.”
Further added, “Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by the Reserve Bank of India (RBI) after reviewing (the) report of the IT auditors.”
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Paytm Denies The Claim
As a comment on this matter, an official spokesperson of the Bank speaks and denies the claims by saying, “the recent Bloomberg report on Paytm Payments Bank claiming data leak by Chinese firms is completely false and simply sensationalizing.”
He further added, “Paytm Payment Bank is proud to be a completely homegrown bank and is fully compliant with RBI’s directions on data localisation. 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.”
Bank assured that they are taking the essential steps to follow the RBI’s directives. As a comment to Economic Times, the spokesperson of the Bank said, “we assure you that the recent RBI direction will not impact our existing customers in any way and they can continue to use our banking services seamlessly We are taking necessary steps to comply with the directions of RBI and committed to minimize any inconvenience caused to our customers.”
