Paytm accused of sharing data with Chinese partner, bank calls it falsetext_fields
New Delhi: Paytm has its back to the wall after a reveal by Bloomberg claimed the payments bank sharing data with Chinese entities that indirectly own a stake in it.
This goes against RBI's guidelines, according to India Today. The report in Bloomberg, however, didn't reveal the nature of the data shared.
RBI asked 'the Paytim to immediately stop onboarding new users over' what one report quoted, "certain material supervisory concerns observed in the bank".
The guidelines by RBI want all payment companies operating in the country to store the transaction data on local servers. "The Bloomberg report suggests otherwise for the Paytm Payments Bank," India Today reports.
A spokesperson of Paytm reportedly denied leaking of data, saying that the Bloomberg report on Paytm is completely false and "simply sensationalizing".
The spokesperson is quoted as saying that Paytm is completely a 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," the spokesperson said
Meanwhile, RBI directed Paytm last week as well as asking to stop onboarding new customers to appoint an external firm to conduct comprehensive IT audit.
Following this, Paytm reportedly said it was taking steps to comply with the RBI directives.
"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," Paytm Payments spokesperson reportedly said.
The online payment platform has over 300 million wallets plus 60 million bank accounts, making it among the leading payment banks.