“Paytm Crisis Update: Despite RBI Restrictions, Company Assures Unaffected Business Operations”
Live Paytm Stock Price: Following the Reserve Bank of India’s restriction on its lending arm Payments Bank from accepting new deposits, Paytm’s shares witnessed a 20% decline in value.”
On Wednesday, the banking regulator instructed Paytm Payments Bank, an affiliate of Paytm, to cease accepting fresh deposits into its accounts or popular wallets starting in March. This development has raised concerns about potential revenue erosion from the company’s primary payments business.
This action comes two years after the Reserve Bank of India had previously prohibited Paytm Payments Bank from onboarding new customers. The RBI, in its notification on March 11, 2022, stated, ‘The Reserve Bank of India has today, in the exercise of its powers, including those under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to immediately halt the onboarding of new customers.'”
Follow all the updates here:
- Paytm dismisses the influence of RBI restrictions on Payments Bank. What was the company’s statement?
Paytm stated that it will exclusively collaborate with other banks and not with Paytm Payments Bank.”
- Stock trails at ₹600 mark at market close
The shares of Paytm continued to languish at ₹600 market at the closure of the stock market. The stock had opened 20 percent down at the opening.
- What options does Paytm have following the RBI restrictions?
Paytm has the opportunity to appeal the order first to the department within the RBI that issued it and subsequently to the central bank’s board, according to sources. Additionally, the company may consider legal recourse through the courts. However, individuals familiar with the matter indicate that the RBI maintains its position that it no longer wants Paytm to operate as a payments bank.”
- “Live Updates on Paytm Crisis: RBI Audit Reveals Financial and Data Traffic Connections Between Paytm Payments Bank Ltd. and the Wider Paytm Ecosystem
A technical audit conducted by the Reserve Bank of India uncovered financial and data traffic linkages between the closely regulated Paytm Payments Bank Ltd. and the broader Paytm ecosystem, leading to accounting and supervisory challenges, as reported by individuals familiar with the matter. The regulator had previously cautioned Paytm about these issues, but they reportedly remained unresolved, according to sources who requested anonymity as the matter is not public, as reported by Bloomberg.”