RBI Action Hits Paytm Shares

1 Feb 2024 , 10:43 AM

Concerns were raised on Wednesday when the bank regulator ordered Paytm Payments Bank, an affiliate of Paytm, to cease taking new deposits in its accounts or well-known wallets as of March. This action may reduce income from the company’s primary payments division.

The action was taken two years after Paytm Payments Bank was prohibited by the RBI from accepting new clients. The Reserve Bank of India (RBI) announced on March 11, 2022, that it has ‘directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers’ as part of the exercise of powers under section 35A of the Banking Regulation Act, 1949.

Market value of fintech company dropped by ₹9,646 crore in early trading

Paytm shares fell 19.99 % at the NSE, reaching ₹609, the lowest trading limit allowed for the day.

Additionally, in early trading, the company’s market capitalization (mcap) decreased by ₹9,646.31 crore to ₹38,663.69 crore.

Customers may, however, request a refund, cashback, or interest at any time.

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