RBI punishes Paytm Payments Bank for sharing information with China-based entities: Report

RBI punishes Paytm Payments Bank for sharing information with China-based entities: Report

FPJ Web DeskUpdated: Monday, March 14, 2022, 10:23 PM IST
article-image
The RBI last week directed Vijay Shekhar Sharma-promoted Paytm Payments Bank Ltd (PPBL) to stop opening new accounts amid ''material supervisory concerns'' observed in the bank | PPBL Twitter image

The RBI on Friday asked Paytm Payments Bank to stop opening new accounts amid "material supervisory concerns" observed in the bank.

The reason for the RBI punishing the bank was because it violated rules by allowing data to flow to servers abroad and didn’t properly verify its customers, a person familiar with the matter told Bloomberg.

Annual inspections by the Reserve Bank of India (RBI) found that the company’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, Bloomberg said quoting a person privy to the matter.

RECENT STORIES

Mumbai News: MHADA, Adani Realty Ink Landmark Pact For Goregaon's Largest Redevelopment Project

Mumbai News: MHADA, Adani Realty Ink Landmark Pact For Goregaon's Largest Redevelopment Project

Aviation News: Akasa Air Signs 3-Year C-Check Maintenance Deal With GMR Aero Technic For Boeing 737...

Aviation News: Akasa Air Signs 3-Year C-Check Maintenance Deal With GMR Aero Technic For Boeing 737...

IndiGo Launches Direct Daily Flight Between Mumbai And Jalndhar’s Adampur, Enhancing Regional...

IndiGo Launches Direct Daily Flight Between Mumbai And Jalndhar’s Adampur, Enhancing Regional...

Glen Industries IPO To Open On Jul 8; Fixes Issue Price Band At ₹92-97/ Share

Glen Industries IPO To Open On Jul 8; Fixes Issue Price Band At ₹92-97/ Share

Gold Falls ₹550 To ₹98,570/10 Grams Amid Muted Global Demand

Gold Falls ₹550 To ₹98,570/10 Grams Amid Muted Global Demand