Paytm Payments Bank has denied news reports that RBI barred it from onboarding new customers because it was "leaking data" to Chinese firms.
Annual inspections by the Reserve Bank of India (RBI) found that the company’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, Bloomberg quoted a person privy to the matter.
Paytm Payments Bank termed the report "completely false, inaccurate and unverified," adding that it 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 statement said.
The Bank (Paytm Payments) 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, it said.
It also clarified that the services will not be affected for the customers.
"PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption," the statement said.
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, it said.