In March, the Reserve Bank of India ordered a comprehensive
audit of the company's IT systems, citing "material" supervisory
concerns, without elaborating further, and barring it from taking on new
customers.
The bank is working with the RBI to complete the IT audit
and address the regulator's concerns. "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.
The central bank did not immediately respond to an email
seeking comments. Paytm in March denied a Bloomberg news report that said RBI
had found its servers were sharing information with China-based entities that
indirectly own a stake in the firm.
Paytm is backed by China's Alibaba Group Holding and its
affiliate Ant Group. One 97 Communications Ltd, the parent of fintech firm
Paytm, on Friday reported a wider fourth-quarter loss due to higher payment
processing, marketing and employee costs.
Deora said the company was on track to achieve profitability
by September 2023. "We are seeing good growth in high margin businesses
and as a result we are seeing improvements in contribution margin."
"Our indirect expenses will not grow as fast as last year as we don't
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.
Paytm made its stock market debut in November last year in
one of the country's biggest-ever initial public offerings, but the shares have
since sunk 70%.