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

div classBodysc17zpet90 cdBBJodivpBy Nupur Anandp

pMUMBAI Reuters – Indias Paytm Payments Bank, which facilitates transactions on mobile commerce platform Paytm, expects the central bank to allow it to resume taking on new customers in the next few months, a top executive told Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIn March, the Reserve Bank of India ordered a comprehensive audit of the companys IT systems, citing “material” supervisory concerns, without elaborating further, and barring it from taking on new customers.p

pThe bank is working with the RBI to complete the IT audit and address the regulators concerns.p

p“The process is underway and we think it should take three to five months from where we are right now,” Madhur Deora, group chief financial officer, Paytm, told Reuters on Sunday.p

pThe central bank did not immediately respond to an email seeking comments.p

pPaytm in March denied a Bloomberg news report that said RBI had found its servers were sharing information with Chinabased entities that indirectly own a stake in the firm.p

pPaytm is backed by Chinas Alibaba Group Holding and its affiliate Ant Group.p

pOne 97 Communications Ltd, the parent of fintech firm Paytm, on Friday reported a wider fourthquarter loss due to higher payment processing, marketing and employee costs.p

pDeora said the company was on track to achieve profitability by September 2023.p

p“We are seeing good growth in high margin businesses and as a result we are seeing improvements in contribution margin.”p

p“Our indirect expenses will not grow as fast as last year as we dont expect to make any significant investments in new businesses or employee cost this year as we have already made those in the last year,” he added.p

pPaytm made its stock market debut in November last year in one of the countrys biggestever initial public offerings, but the shares have since sunk 70.p

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pp Reporting by Nupur Anand Editing by Elaine Hardcastlep

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