Paytm payments bank expects central bank curbs to be lifted in three-five months -Breaking
By Nupur Anand
MUMBAI, (Reuters) – India’s Paytm Payments Bank facilitates payments on Paytm’s mobile commerce platform. A top executive said to Reuters that the central bank will allow the bank to resume accepting new customers within the next few months.
The Reserve Bank of India initiated a thorough audit of the IT systems of the company, in March. This was based on “material” supervisory concerns. However, it did not elaborate further and prohibited the bank from taking on any new customers.
To complete the IT audit, the bank will work with RBI and respond to regulators’ concerns.
Madhur Deora (group chief financial officer at Paytm), stated that the process was underway, and that it would take between three and five months to complete.
An email asking for comments was not answered by the central bank immediately.
Paytm, in March, denied that a Bloomberg News report had claimed that RBI’s servers were sharing data with China-based entities which indirectly hold a stake.
China backs Paytm Alibaba (NYSE:) Group Holdings and Ant Group, its affiliate.
One 97 Communications Ltd (parent of Fintech company Paytm) reported Friday a larger fourth quarter loss as a result of higher marketing, payment processing and employee costs.
Deora stated that the company is on track for profitability in September 2023.
“We’re seeing strong growth in high margin business and consequently we see improvements in the contribution margin.”
“Our indirect expenses won’t rise as fast this year, as we don’t anticipate to make significant investments in new companies or employees cost this year, as they have done in the past year,” he said.
Paytm’s stock market debut was made in November 2013 in the largest-ever initial public offering in the country. However, the shares have lost 70% since then.