The RBI ordered an audit of Paytm’s IT systems in March, citing “material” supervisory concerns, and barred it from accepting new customers.
According to Reuters, India’s Paytm Payments Bank, which facilitates transactions on the mobile commerce platform Paytm, expects the central bank to allow it to resume accepting new customers in the coming months.
The Reserve Bank of India ordered a comprehensive audit of the company’s IT systems in March, citing “material” supervisory concerns without elaborating and prohibiting it from accepting new customers.
The bank is collaborating with the RBI to complete the IT audit and address the concerns of the regulator.
“The process is underway, and we believe it will take three to five months from where we are now,” Paytm’s group chief financial officer, Madhur Deora, told Reuters on Sunday.
The central bank did not respond immediately to an email requesting a comment.
Paytm denied a Bloomberg news report in March that said the RBI discovered its servers were sharing information with China-based entities that indirectly own a stake in the company.
Paytm is backed by Alibaba Group Holding and its affiliate Ant Group in China.
One 97 Communications Ltd, the parent company of Paytm, reported a larger fourth-quarter loss on Friday due to higher payment processing, marketing, and employee costs.
Deora stated that the company was on track to become profitable by September 2023.
“We are seeing good growth in high margin businesses, and as a result, contribution margin is improving.”
“Our indirect expenses will not grow as quickly as they did last year because we do not expect to make any significant investments in new businesses or employee costs this year as we did last year,” he added.
Paytm debuted on the stock market in November of last year as one of the
