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Paytm payments bank expects central bank curbs to be lifted in three-five months -Breaking

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© Reuters. FILE PHOTO – Paytm is shown on a smartphone as seen in the illustration, taken July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Nupur Anand

MUMBAI (Reuters – India’s Paytm Payments Bank which facilitates transactions via mobile commerce platform Paytm expects that the central banking will permit it to resume taking in new customers over the coming months, a senior executive stated to Reuters.

The Reserve Bank of India had ordered an audit of all IT systems of the company in March. It cited “material” supervision concerns and barred it from accepting new customers.

To complete the IT audit, the bank will work with RBI and respond to regulators’ concerns.

Madhur Deora Group Chief Financial Officer, Paytm told Reuters that “The process has begun and it should take three- to five months from what we are currently.”

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 Holding, Ant Group and their affiliate Ant Group.

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 it is leading to improvements in the contribution margin.”

He said, “Our indirect costs won’t grow as quickly as last year because we don’t expect to invest in new businesses and employee cost this fiscal year like we did last year.”

Paytm was listed on the stock exchange in November 2013. It had one of the biggest ever initial public offerings in India. But, shares in Paytm have plummeted 70%.

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