Stock exchange BSE has changed the daily limit of Paytm shares to 10 per cent from 20 per cent earlier after the stock of the fintech major hit 20 per cent lower circuit for two consecutive sessions. The plunge in Paytm shares came after the Reserve Bank of India (RBI) on January 31 imposed restrictions on Paytm Payments Bank Limited (PPBL), following a system audit report and subsequent compliance validation report of external auditors.
PPBL is barred from accepting deposits or top-ups in any customer account, wallets or FASTags after February 29 under section 35A of the Banking Regulation Act, 1949, according to the order.
Also Read: Paytm share price locked at 20% lower circuit for second consecutive session
The RBI further mentioned that the Nodal Accounts of One97 Communications and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.
Any partnership with Paytm, specifically to provide banking services to their digital wallets business, would also need a prior approval from the RBI, according to reports.
After the RB action, One 97 Communications, the parent company of Paytm, in an exchange filing on Thursday, February 1, said it will partner with other banks and not with Paytm Payments Bank (PPBL).
In a call with analysts, Paytm said it hopes to keep the digital wallet business operational by forging new banking relationships and its CEO Vijay Shekhar Sharma said such partnerships would “not be difficult to execute”.
After One 97 Communications shares hit back-to-back 20 per cent lower circuits since February 1, approximately ₹45,000 crore of wealth is eroded from Paytm shares in just two days. Paytm shares were at ₹487.2 on Friday, near record lows marked in 2022, and valuing the company at $3.7 billion.
In the latest update, the Enforcement Directorate (ED)- India’s financial crime-fighting agency will probe Paytm Payments Bank if any fresh charges of fund siphoning are found, Revenue Secretary Sanjay Malhotra told Reuters on Saturday, February 3.
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Published: 03 Feb 2024, 05:33 PM IST