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

“The RBI (Reserve Bank of India) has additional knowledgeable that the Paytm Funds Financial institution Restricted has not but appointed the IT audit agency to conduct a complete System Audit of the IT system of the financial institution,” Karad mentioned.

The RBI on March 11 barred SoftBank-backed Paytm Funds Financial institution from including new clients as a result of doubtless gaps in its expertise programs.

“Onboarding of recent clients by Paytm Funds Financial institution Ltd will likely be topic to particular permission to be granted by the Reserve Financial institution of India (RBI) after reviewing (the) report of the IT auditors,” the central financial institution mentioned in an announcement.

On March 14, ETtech reported that the
central bank would set the terms of reference for an independent technology audit of Paytm Funds Financial institution after the regulator banned the onboarding of recent clients.

Nevertheless, founder Vijay Shekhar Sharma denied a media report that alleged information sharing with Chinese language entities could have led to the regulatory curbs.

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“I need to inform and ensure that in varied observations RBI has shared with Paytm Funds Financial institution, there’s completely no reference to any information sharing or servers being outdoors or information sharing with any unauthorized personnel nationwide or international–any nation in anyway,” Sharma mentioned, denying a Bloomberg report that mentioned information sharing with Chinese language entities was the first purpose behind the central financial institution motion.

Paytm Funds Financial institution joins a swelling checklist of economic firms and lenders, comparable to Mastercard, Diners Membership, American Specific and HDFC Financial institution, which have been penalised for systemic glitches. The banking regulator is eager on constructing a failsafe funds system in India the place transactions are being more and more accomplished digitally.