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Is Paytm Payments Bank sending your data to China? The company denied the allegations

Recently a new report came about Paytm Payments Bank. In which it was said that it is sharing the data of Indian customers with Chinese entities. The company has denied these claims.

Last week, the Reserve Bank of India (RBI) prohibited Paytm Payments Bank from adding new customers. According to the latest Bloomberg report, Payments Bank was sharing data with Chinese entities. This was against the rules of RBI. However, the report did not specify what kind of data was being shared with China. 

As per the RBI guidelines, the transaction data of all payment companies operating in the country should be stored on the local server. It was told in the Bloomberg report that this is not the case in the case of Paytm Payments Bank. 

However, Paytm dismissed the data leak claim. A spokesperson for Paytm Payments Bank told that Bloomberg’s report that the Chinese firm is leaking data of Paytm Payments Bank, this claim is completely false. 

He further told that Paytm Payments Bank is a completely indigenous bank and it follows the data localization rules of RBI. All the data of the bank is in the country itself. The company believes in the Digital India program and is committed to promoting it in the country. 

Let us tell you that last week the central bank had also asked the payments bank to appoint an outside firm to conduct a comprehensive IT audit. Last week, the RBI, exercising its powers under Section 35A of the Banking Regulation Act, 1949, prohibited Paytm Payments Bank Ltd from adding new customers. 

New customers can be added to Paytm Payments Bank Ltd only when the Reserve Bank of India reviews the reports of IT auditors and gives permission to the company for this. 

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