Paytm shares surged 5% today after being confined in the lower circuit for three consecutive sessions after the RBI’s restrictions.
Paytm shares rose 5% on February 6 after being caught in a lower circuit for three straight sessions due to the RBI’s restrictions on its payments bank business. The RBI prohibited Paytm Payments Bank from receiving new deposits and executing credit transactions from February 29. At 9.40 a.m., Paytm traded at ₹466. On February 5, the stock of Paytm parent One97 Communications fell 10%. The shares have dropped 41% in the last four trading sessions, starting at ₹761.4.
Paytm shares are up 5%; will this recovery continue?
The Confederation of All India Traders (CAIT), a trade association, recently released a recommendation advising companies to switch to other payment methods. The CAIT has advised customers to take proactive steps to safeguard their funds and guarantee ongoing financial transactions in response to certain restrictions enforced by the RBI. Because so many women, small business owners, hawkers, and vendors use Paytm to make payments, RBI regulations on the platform may cause financial hardship for them, according to CAIT.
In the meantime, Vijay Shekhar Sharma, the founder and CEO of Paytm, promised staff that there won’t be any layoffs at the firm because it is still in communication with the RBI. We don’t know everything for sure. such as the precise nature of the error. However, we will shortly work things out. We’ll get in touch with the RBI to find out what we can do, he said to Paytm staff. He had stated that the Paytm app would stay functional after February 29. In a recent post on X (formerly Twitter), he assured me that your favorite app is operational and will continue to function seamlessly beyond February 29th. He, along with every member of the Paytm team, extends gratitude for your unwavering support. Emphasizing the team’s dedication, he reiterated their commitment to serving the nation with complete adherence to regulations, tackling every challenge with a solution-oriented approach.
