paytm payments bank: Paytm Payments Bank yet to appoint firm for IT audit: MoS finance to Lok Sabha

new Delhi: Minister of State for Finance Bhagwat Karad told the Lok Sabha that Paytm Payments Bank is yet to appoint a firm to audit its Information Technology (IT) systems.

“RBI (Reserve Bank of India) has further informed that Paytm Payments Bank Ltd. has not yet appointed an IT audit firm to conduct a comprehensive system audit of the bank’s IT system,” Karad said.

The RBI on March 11 barred SoftBank-backed Paytm Payments Bank from adding new customers due to possible gaps in its technology systems.

“Addition of new customers by Paytm Payments Bank Limited will be subject to specific permission granted by the Reserve Bank of India (RBI) after review of the IT auditors’ report,” the central bank said in a statement.

On March 14, ETtech reported that the central bank would set the terms of reference for an independent technology audit of Paytm Payments Bank after the regulator imposed restrictions on onboarding of new customers.

However, founder Vijay Shekhar Sharma denied a media report that sharing of alleged data with Chinese entities could put the regulator in check.

Find stories that interest you

Sharma said, “I would like to inform and confirm that RBI has, in various comments shared with Paytm Payments Bank, made no reference to any data sharing or server-side or data sharing with any unauthorized personnel. No – in any country.” denied a Bloomberg report that said sharing of data with Chinese entities was the primary reason behind the central bank’s action.

Paytm Payments Bank has joined the list of financial companies and lenders such as Mastercard, Diners Club, American Express and HDFC Bank that have been penalized for systemic defaults. The banking regulator is keen to create a fail-safe payment system in India where transactions are increasingly being done digitally.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.

Subscribe to our newsletters
If you have any questions or comments, please don't hesitate to contact us.