Recent reports have increased the trouble of digital payment giant, ‘Paytm’, stating that they are leaking data of their customers to Chinese firms. RBI has restricted the Paytm Payments Bank to include new customers, due to the reports that suggest data leaks from Paytm to Chinese firms. The Reserve Bank Of India has also called for an IT audit to check the concerns in detail.
However, all these reports were denied by Paytm payments bank, as they stated, ‘Paytm Payments Bank is proud to be a completely homegrown bank, fully compliant with RBI’s directions on data localisation. All the official data of the bank resides within India‘. The company has taken a step and said they comply with the orders of RBI and would follow the directions given by the bank.
These regulations and statements have affected the shares of Paytm, recording the lowest marginal recovery of about 12.21% lower than the current price. This could adversely affect the trade of Paytm. The fresh reports state that the Chinese firms have their stake in the parent company Paytm and there are some suspicions that need to be examined.
After the restrictions by RBI, Paytm directed their customers and said, “Dear customers, we value your relationship with us, and we are working on all steps to comply with the RBI directions. Our existing customers can easily continue to seamlessly use all the banking services.” The PPBL ( Paytm Payments Bank Ltd. ) further added that “The savings of existing users, their fixed deposits and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe. The bank remains fully committed to maintaining high standards of compliance and continues to promote all digital banking services for the customers.”
The conditions can be devastating but the users are hoping that the bank must work as usual, and should help the RBI in the further investigation to attain better transparency of work.