Paytm Share Price: Shares of One 97 Communications- parent of fintech giant Paytm- crashed to the lower circuit for the third straight day. They were down 10 per cent at ₹438.35 on BSE with only sellers on the counter as the downward pressure remained unabated even as exchanges revised the lower circuit limit for the stock from 20 per cent to 10 per cent over the weekend.
This came after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from conducting certain operations. With today’s fall, the Paytm stock is now 56 per cent away from its 52-week high and almost 80 percent below its IPO price of ₹2,150.
In February, the Paytm stock has shed over 42 per cent in just 3 sessions after an almost 20 per cent rise in January. In the last one year, the stock has declined over 7 percent.
What has the RBI said on Paytm Payments Bank
The RBI issued a directive on January 31 instructing Paytm Payments Bank to cease new credit and deposit operations, as well as other banking activities after February 29 over its failure to comply with regulations despite repeated warnings. RBI flagged concerns including falsified compliances, irregularities in Know Your Customer (KYC) norms and related party transactions thereby halting certain banking operations of Paytm Payments Bank.
Paytm stock was also in focus amid media reports of an investigation by the Enforcement Directorate on One97 Communications Ltd. But the firm denied these allegations saying, “Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering. In the past, certain merchants/users on our platforms have been subject to inquiries and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants/users in the past, we have cooperated with them on these investigations.”
“The recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024, and not rely on unofficial sources,” it explained.
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