RBI punished Paytm Payments Bank for data leaks to Chinese firms: Report

Annual inspections by RBI found that the company's servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, says a source

Paytm Payments Bank, which processes transactions for India’s digital payments giant Paytm, was barred from taking on new customers because it violated rules by allowing data to flow to servers abroad and didn’t properly verify its customers, according to a person familiar with the matter.

Annual inspections by the Reserve Bank of India found that the company’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, the person said, asking not to be identified as the details are private. Paytm Payments Bank is a joint venture between Paytm and its founder Vijay Shekhar Sharma.