Paytm’s chief executive officer Vijay Shekhar Sharma and officials from the company met with the Reserve Bank of India (RBI) to discuss a roadmap for addressing regulatory concerns, as reported by news agency Reuters, citing two sources familiar with the matter. This meeting follows the RBI’s directive to the fintech giant to wind down most of its business, including deposits, credit products, and its popular digital wallets, by February 29.
Paytm Shares Rebound
Paytm’s parent company, One97 Communications Ltd, witnessed a rebound in shares this morning following three consecutive days of sharp decline. Despite initially weak trading conditions, the stock surged by 7.79% to ₹472.50 on the BSE. Similarly, on the NSE, it rose by 7.99% to ₹473.55.
Over the past three sessions, the stock experienced a significant drop of over 42%, resulting in a loss of ₹20,471.25 crore from its market valuation. Shares of One97 Communications Ltd had hit their lower circuit limit on Monday.
Discussion Points at the Paytm – RBI Meeting
According to sources familiar with the matter, discussions centred around addressing RBI’s regulatory concerns, with Paytm requesting an extension of the February 29 deadline. Paytm sought clarity from the RBI regarding transferring licenses for its wallets business and the digital highway toll payment service, Fastag.
The RBI listened to Paytm’s concerns without making any commitments, as stated by a second source.
Paytm’s Frequent Run-Ins With the RBI
Paytm has been frequently at odds with the RBI, marking a pattern of regulatory scrutiny.
In October last year, the central bank imposed a penalty of INR 5.39 crore on the fintech giant’s subsidiary for non-compliance with know-your-customer norms. The RBI highlighted six major issues with the payments bank, including the failure to identify beneficial owners for onboarded entities providing payout services, negligence in monitoring payout transactions, and failure to conduct risk profiling of entities availing payout services. Additionally, the bank was criticized for not promptly reporting cybersecurity incidents.
In March 2022, the RBI instructed Paytm Payment Bank to cease onboarding new customers, a restriction that remains in effect. Despite expressing optimism in September 2023 about the possibility of lifting the restrictions by March 2024, the recent RBI actions may have complicated matters on that front.
Also Read: FlixBus Launches in India with Inaugural Intercity Fares Beginning at Rs 99
Ola Electric Introduces 4kWh S1X Model; to Establish 10,000 New Charging Points
Sony and Zee Clashed Over Russia Assets, Star Cricket Deal Before Merger Collapsed
