Paytm Bank denies reports of data leak to Chinese firms
(Image source: Paytm)

Asian Tech Press (Mar. 14) -- Paytm Payments Bank, owned by India's digital payments giant Paytm, on Monday denied reports that it leaked data from India to offshore Chinese companies.

Bloomberg reported Monday that Paytm Payments Bank was barred from taking on new customers because it violated rules by allowing data to flow to foreign servers and by not properly verifying its customers.

The report also mentioned that annual inspections by the Reserve Bank of India, the country's central bank and regulatory body, found that Paytm Payments Bank's servers shared information with a Chinese entity that indirectly owned a stake in the payments bank.

China's Alibaba Group Holding Ltd. and its financial affiliate Ant Group Co. own shares in Paytm, according to exchange filings.

In response, Paytm Payments Bank said on Twitter,"A recent Bloomberg report claiming data leak to Chinese firms is false and sensationalist."

"Paytm Payments Bank is proud to be a completely homegrown bank, fully compliant with RBI's directions on data localisation," the company emphasized, "All of the Bank's data resides within India."

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