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Bank PayTM Payments Bank, which deals with transactions for Digital Payments from India Giant PayTM, has been forbidden to take new customers because it violated the rules by allowing data to circulate on servers abroad and N ‘ has not verified its customers correctly, according to a familiar person with the question.
Annual Inspections of the Indian Reserve Bank found that the company’s servers shared information with China-based entities that indirectly possess a PayTm Payments Bank participation, the person said, asking for not be identified as the details are private. PayTM Payments Bank is a joint venture between PayTM and its founder Vijay Shekhar Sharma. China’s Alibaba Group Holding Ltd. And his affiliate, Jack Ma’s Found Group Co., own actions of Paytm, according to the exchange deposits.An email at the RBI has not been answered immediately. PayTM did not respond to an email looking for a commen In a Friday statement Friday Friday, the RBI had cited “material supervision concerns” for its action, without elaborating. PayTM actions, officially known as 97 Communications Ltd., fell up to 13.3% Monday.
While the RBI had similar companies with American Express Banking Corp. and MasterCard Inc. for introducing data storage rules, the concerns about the PayTM payments bank are particularly sensitive, given India’s hostile political relationship India has prohibited hundreds of related or originating applications from China over the last two years following a bloody confrontation at the disputed border of nations. Bank PayTM Payments Bank, being a regulated financial institution, was required to maintain a so-called level of service agreement with its technology provider that would ring the entity of its owners, said the person. Paytm Payments Bank had also launched thousands of customers without the known documentation – your adequate client-client and the concern was that some of them could have been mules for money laundering, the person added The regulator now wants PayTM Payments Bank to appoint a technological auditor in consultation with the RBI, the person said. The Company takes steps to comply with the RBI Directive, including the appointment of an external auditor, “said the company in a statement on Saturday. Existing customers will not be affected.
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