Paytm Payments Bank has not yet appointed the company to conduct an audit of the Information Technology System (IT), the Ministry of Finance has told parliament.
“RBI (Bank of India’s backup) has further informed that Paytm Payments Bank Limited has not appointed an IT audit company to conduct a comprehensive system audit of the Bank’s IT system,” said Finance Minister Bhagwat Karad to Lok Sabha in a written reply on the question on April 4.
On March 11, RBI Barred Paytm Payments Bank from new customers and ordered it to appoint the company to conduct a “comprehensive system audit of the IT system”.
“Onboarding from new customers by Paytm Payments Bank Ltd will submit to special permission to be provided by the RBI after reviewing IT auditor reports,” the central bank said.
The day after the RBI command, Paytm Payments Bank said it took a step immediately to obey the instructions, however, almost a month later, it hadn’t done it.
While the RBI did not mention the reason for the direction given to the Paytm payment bank, Bloomberg reported, citing the source, that the action followed data leaks to Chinese entities. According to the report, the RBI has found in its annual inspection that the Paytm Payments Bank server shares information with Chinese-based entities which indirectly have shares in the bank.
However, Vijay Shekhar Sharma, Chief Executive Paytm, denied the claim, said the report was “really wrong” and “really wrong”.
“It is wrong to assume that the bank shares data with China or other foreign entities,” Sharma told CNBC-TV18.
