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Paytm stock falls 3% amid speculations over Paytm Payments Bank's licence

If RBI revokes Paytm Payments Bank's licence, it would be the first time in over two decades that the banking regulator would take such an action.

March 04, 2024 / 11:15 IST
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While Paytm is trading 27 percent above the 52-week low of Rs 318 hit on February 16, the fintech stock is still around 46 percent below the January 31 closing price of Rs 761.20.

Shares of Paytm fell 3 percent in morning deals on March 4 amid reports that with less than two weeks to go for Paytm Payments Bank Limited (PPBL) to cease operations, the Reserve Bank of India (RBI) may take the unprecedented step of revoking its banking licence.

If the RBI ends up revoking PPBL's licence, it would be the first time in over two decades that the banking regulator would take such an action.

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The RBI, on January 31, imposed business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after March 15. The regulator found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks. The stock has taken a steep hit since the RBI crackdown.

At 9:46 am, Paytm stock was trading at Rs 406.90 on the National Stock Exchange (NSE), down 1.8 percent from the previous close.