Paytm denies Data leak to Chinese firms

RBI action will not affect existing customers

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Biznextindia : One 97 communications Limited, the holding company of financial services and e-commerce platform Paytm Payment Bank has denied reports of data leak to Chinese firms and has confirmed that all of its data are in India as its servers are located inside India.

“The Company would like to update that it has been informed by its associate, Paytm Payments Bank Limited (PPBL) that the regulator has not expressed any concerns regarding data leak or access shared with any Chinese firms. PPBL’s data servers are located within India and it proudly supports data localization. The Reserve Bank of India (RBI) directive to PPBL to temporarily halt onboarding of new customers, via a letter dated March 11, 2022, is not regarding any data leak to any foreign national or firms. PPBL remains committed to working with the regulator to address their concerns as quickly as possible” said the company.

“The recent Bloomberg report on Paytm Payments Bank claiming data leak to 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 company said.
Paytm has also said that RBI direction issued on March 11 to temporarily halt on boarding of new customers will not affect its existing customers. The company also sees no impact of the RBI order on its overall business.
“Paytm believes that the measures imposed upon PPBL will not materially impact Paytm’s overall business. This direction does not have an impact on the services that Paytm provides in partnership with other financial services institutions” it said.

The company has reported highest ever loan disbursal in the first two months of the January-March 2022 quarter.
Loans disbursed through the platform grew 449% y-o-y to 4.1 million loans in first two months of the quarter, while the value of loans disbursed was INR 2,095 Cr (y-o-y growth of 366%). Offline payments business accelerates with number of devices deployed growing to 2.6 million, the company has informed to the bourses.

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