Paytm expects central bank edging to change

Paytm said it was optimistic India’s central bank would let it accept new customers in the coming months, Reuters wrote on Sunday (May 22nd), after the Reserve Bank of India (RBI) ordered an audit of the company’s IT systems. company and blocked it. to take on new customers in March.

The audit came as the RBI cited “material” oversight concerns the bank had seen, and gave no further details. The company rule that Paytm could not accept new customers also came about because of this, and Paytm would work with the bank on the issues.

“The process is ongoing and we think it should take three to five months from where we are now,” Paytm Group Chief Financial Officer Madhur Deora told Reuters.

Paytm previously denied a Bloomberg report that RBI discovered that Paytm’s servers had shared information with Chinese entities with indirect holdings.

Paytm’s parent company, One 97 Communications, posted a bigger loss in the fourth quarter due to higher payment processing, marketing and staffing costs, although the report said the company should be profitable from by September 2023.

In March, PYMNTS wrote that Paytm CEO Vijay Shekhar Sharma tried to allay concerns about reports of user information leaking to Chinese companies by saying investors had no assets for customer data.

Read more: Paytm CEO: Investors don’t have access to user data

Sharma said none of the investors had access to the company’s customer database and the central bank had not bothered with storing or accessing the data.

“There is no access to banking customer data to anyone, of any nationality…RBI has not mentioned anything regarding investors,” Sharma said.

This all comes as Paytm debuted on the stock exchange in November 2021, which ended up being one of the biggest initial public offerings (IPOs) in the country.

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