Paytm CEO: Investors Don’t Have Access to User Data

Paytm CEO Vijay Shekhar Sharma said investors in his firm do not have access to customer data, in a bid to ease concerns over reports of user information being leaked to Chinese firms, Reuters reported Tuesday (March 15).

The India-based digital payment company, backed by China’s Alibaba Group Holding and affiliate Ant Group, has been prohibited from accepting new customers by the Reserve Bank of India (RBI). The country’s central bank and regulatory body also ordered Paytm Payments Bank to conduct a comprehensive audit of its IT systems, citing concerns observed in the bank, the news outlet reported.

On Monday (March 14), reports emerged that Paytm Payment Bank was being audited by the RBI over allegations that it engaged in data sharing with organizations based in China and failed to have adequate know-your-customer documentation.

See also: Paytm Bank Under Audit Over Alleged Data Sharing With China

Paytm denied the report.

Sharma told Reuters that no investor had access to the company’s customer database, and the country’s central bank has not raised concerns about data storage or access.

“There is no access of any bank customer data to any person, of any nationality ... RBI has not mentioned anything in relation to investors,” he said.

Last week, RBI announced that it blocked Paytm Payments Bank from welcoming new customers pending an audit of its IT systems.

Read more: RBI Blocks Paytm Bank From Accepting New Customers

“This action is based on certain material supervisory concerns observed in the bank,” the RBI said.

Paytm Payments Bank was launched in 2017 and processes transactions for Paytm.