HomeUncategorizedPaytm Payments Bank says claims of Chinese data leak 'false and sensationalist'

Paytm Payments Bank says claims of Chinese data leak ‘false and sensationalist’

New Delhi: Paytm Payments Bank Ltd (PPBL) on Monday refuted media reports which claimed that data has been leaked to Chinese firms as “completely false, inaccurate and unverified”.

“Source-based media reports claiming data leak to Chinese firms are completely false, inaccurate and unverified,” the company said in a statement. The bank said it is fully compliant with the Reserve Bank of India’s (RBI) directions on data localisation and all of the users’ data resides within India.

A Paytm Payments Bank spokesperson said, “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.”

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Earlier today, Bloomberg reported that shares of Paytm dropped by 13 percent after the RBI barred PPBL from accepting new customers, based on annual inspections by the central bank, which found that Paytm’s servers were sharing information with China-based entities.

“The action by the RBI is based on certain ‘material supervisory concerns’ and the restrictions will continue pending a comprehensive audit of its information-technology systems, the central bank said in a statement on Friday,” the report added.

The bank said it 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 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 said it remains fully committed to maintaining high standards of compliance and continues to promote digital banking services for all.

India Blooms News Service

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