Paytm shares: At 1:11 pm, Paytm shares were being traded at Rs 457.15 on the BSE, marking a nearly 10 percent decrease from the previous closing price.
On the afternoon of February 8, shares of One97 Communications, the parent company of Paytm, continued to decline following the Reserve Bank of India’s announcement regarding action taken against Paytm Payments Bank due to ongoing non-compliance. At 1:11 pm, Paytm shares were trading at Rs 457.15 on the BSE, reflecting a decrease of nearly 10 percent from the previous close. On Thursday, Deputy Governor Swaminathan J stated, “This supervisory action is a result of persistent non-compliance. Such measures typically follow months, and sometimes years, of bilateral engagement where we highlight deficiencies and allow time for corrective action. As regulators, it is our responsibility to safeguard consumers.”
The Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank’s activities on January 31. The digital lender was also instructed to cease taking deposits, credit transactions, or top-ups in any client accounts, prepaid cards, wallets, FASTags, or NCMC cards after February 29. Governor Shaktikanta Das remarked on February 8th that the RBI occasionally grants more than enough time for compliance.
At the moment, there is no concern regarding the financial system,” Das stated during the press conference following the announcement of the RBI’s Monetary Policy Committee. He further mentioned that the restrictions we impose are always commensurate with the seriousness of the situation. As a responsible regulator and supervisor, all our actions prioritize systemic stability and the protection of depositors’ or customers’ interests. These considerations are non-negotiable.” Swaminathan clarified that the RBI’s action does not affect the Paytm app. To clarify, the action is directed toward Paytm Payments Bank, not the Paytm app. Our action does not impact the app, Swaminathan stated.
Previously, it was reported that the RBI discovered instances where the same PAN was associated with multiple customers. In certain instances, it was observed that a single PAN was linked to 100 customers, while in others, it was linked to over 1,000 customers. The cumulative transaction value, amounting to crores, exceeded the regulatory thresholds for minimum KYC pre-paid instruments established by the RBI. On February 5, Paytm’s stock lost 42.4% of its value, or Rs 20,500 crore in market capitalization. On February 7, Paytm closed 10% higher. On Wednesday, almost 21 lakh shares, or 0.3% equity, worth Rs 103 crore changed hands.
On February 5, Paytm’s stock lost 42.4% of its value, or Rs 20,500 crore in market capitalization. On February 7, Paytm closed 10% higher. On Wednesday, almost 21 lakh shares, or 0.3% equity, worth Rs 103 crore changed hands.
