Paytm Payments Bank, an Indian payments bank headquartered in Noida has said that the media reports claiming data leak to Chinese firms are completely false, inaccurate and unverified.
“India’s homegrown Paytm Payments Bank is proud to be a true believer and enabler of the Digital India initiative and is committed to driving financial inclusion in the country. The Bank is bringing access to digital banking to the underserved and unserved population in India,” the bank said.
They further added that the source-based media reports claiming data leak to Chinese firms are completely false, inaccurate and unverified. The bank is fully compliant with RBI’s directions on data localisation and all of the users’ data resides within India.
“The recent Bloomberg report on Paytm Payments Bank claiming data leak to Chinese firms is completely false and simply sensationalising. Paytm Payments 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, said Paytm Payments Bank spokesperson.
The Bank is taking immediate steps regarding the RBI’s decision. PPBL remains committed to working with the regulator to address their concerns as quickly as possible. PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption.
The Reserve Bank of India had directed Paytm Payments Bank to stop with immediate effect the onboarding of new customers.
“The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing the report of the IT auditors.” the RBI said on Friday. RBI further added that the action is based on certain material supervisory concerns observed in the bank.
The bank further explained that the savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional.
The bank remains fully committed to maintaining high standards of compliance and continues to promote digital banking services for all.