Is Paytm Payments Bank Sending Data To China? Company Refuses
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Is Paytm Payments Bank Sending Data To China? Company Refuses

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.

Claim Over 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.”

Also read:

SBI’s Alert For Scanning QR Codes For UPI Payments

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.”

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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