As per RBI guidelines, all payment companies operating in the country should ensure that the transaction data is exclusively saved in the local server.
Paytm denies claims of data leak
Commenting on the matter, Paytm Payments Bank spokesperson has vehemently denied the data leak claims. It has also said that in the recent Bloomberg report of Paytm Payments Bank, the claim of data leak by Chinese firms is completely false and it is only sensational.
RBI instructions to Paytm Payments Bank
The RBI directive issued last week said, “In exercise of its power, inter alia, under section 35A of the Banking Regulation Act, 1949, Paytm Payments Bank Ltd. is hereby restrained with immediate effect to Unable to onboard any new customers.
Paytm Payments spokesperson said, “We assure you that the recent RBI direction will not affect our existing customers in any way and they can continue to use our banking services uninterrupted. We are taking necessary steps. Committed to comply with RBI’s instructions and minimize any inconvenience caused to our customers.”