Paytm Crisis: RBI ordered Paytm Payments Bank to wind down most of its business, including deposits, credit products and its popular digital wallets.
Paytm’s chief executive officer Vijay Shekhar Sharma and officials met the Reserve Bank of India (RBI) to discuss a roadmap to address regulatory concerns, news agency Reuters reported quoting two sources familiar with the matter. This comes after the RBI ordered Paytm Payments Bank to wind down most of its business, including deposits, credit products and its popular digital wallets, by February 29.
Paytm shares rebound
Shares of One97 Communications Ltd that owns Paytm brand rebounded today morning after three days of sharp fall. The stock jumped 7.79 per cent to ₹472.50 on the BSE despite a weak beginning to the trade. It climbed 7.99 per cent to ₹473.55 on the NSE.
In the past three sessions, the stock tumbled over 42 per cent, wiping out ₹20,471.25 crore from its market valuation. Shares of One97 Communications Ltd had hit its lower circuit limit on Monday.
What was discussed at Paytm-RBI meeting?
“Discussions are on about addressing RBI’s regulatory concerns, and the company has sought an extension of the Feb. 29 deadline,” one of the sources told Reuters as Paytm has been seeking clarity from the RBI regarding transfer of license for the wallets business and digital highway toll payment service Fastag.
“The RBI heard Paytm out without making any commitments,” a second source said.