Fully compliant with RBI data localisation directions: Paytm Payments Bank

Paytm Payments Bank on Monday said it is fully compliant with the data localisation rules of the Reserve Bank of India and the entire data of the bank resides in the country.

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.

“All of the Bank’s data resides within the country. We are true believers of the Digital India initiative, and remain committed to driving financial inclusion in the country,” PPBL said in a statement.

Shares of the parent company of PPBL, One97 Communications, were hammered on BSE and National Stock Exchange after a report claimed that Paytm Payments Bank Ltd’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank.

The company has rejected the report.

Sharma holds 51 per cent stake in Paytm Payments Bank (PPBL), while the remaining 49 per cent is held by One97 Communications.

China-based Alibaba group is the biggest shareholder in One97 Communications with about 31 per cent stake through its subsidiaries.

Shares of One97 Communications declined by 12.84 per cent to settle at Rs 675.35. On NSE, the stock tumbled 12.21 per cent to close at Rs 680.40.

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