Is Paytm Payments Bank sending your data to China? Company refutes data leak claims
India Today
Paytm Payments Bank spokesperson has denied the data leak claims and said that “the recent Bloomberg report on Paytm Payments Bank claiming data leak by Chinese firms is completely false and simply sensationalizing”. Know more details.
Last week, the Reserve Bank of India (RBI) directed the Paytm Payments Bank to immediately stop onboarding new users over “certain material supervisory concerns observed in the bank". The latest Bloomberg report reveals that the payments bank was sharing information with Chinese entities that indirectly own a stake in Paytm Payments Bank, which goes against RBI’s guidelines. The report didn't reveal the kind of data that was shared with China.
As per RBI’s guidelines, all payment companies operating in the country should ensure that the transaction's data is stored exclusively on local servers. The Bloomberg report suggests otherwise for the Paytm Payments Bank.
Commenting on the matter, a Paytm Payments Bank spokesperson denied the data leak claims and said that “the recent Bloomberg report on Paytm Payments Bank claiming data leak by Chinese firms is completely false and simply sensationalizing”.
“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," the spokesperson added.
Last week, the central bank also asked the payments bank to appoint an external firm to conduct a comprehensive IT audit.
RBI’s directive issued last week noted, “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”.
“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,” the central bank added in a statement issued last week.
