The Paytm stock slipped further in the afternoon on February 8, extending the day's fall, after the Reserve Bank of India remained firm on its supervisory action following repeated violations and non-compliance. At close, Paytm (One97 Communications) stock was at Rs 446.65 on the NSE, down 10 percent from the previous close, extending fall from the morning trading, wiping most of the gains made in the previous session.
Earlier, on February 7, Paytm ended 10 percent higher. This came after the stock fell around 42 percent in three straight sessions post the RBI's curbs on its payments bank unit. Around 21 lakh shares, or 0.3 percent equity, worth Rs 103 crore changed hands in a large trade on February 7.
Answering a query on Paytm, RBI Governor Shaktikanta Das noted that it was a supervisory action taken after repeated instances of non-compliance, and providing ample time to take corrective measures.
Governor Das noted that the action was to protect consumers, and financial stability. "As a responsible regulator we will ensure inconvenience if any to consumer is minimised."
Follow our market blog for live updates
On January 31, RBI directed Paytm Payments Bank put restrictions on Paytm and has asked the digital lender to stop accepting deposits or credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards after February 29. This is excluding cashbacks, or refunds.
The RBI has also directed the payments bank to settle all pipeline transaction and nodal accounts by March 15. But sources have told Moneycontrol that the Reserve Bank of India (RBI) is considering cancelling the licence of Paytm Payments Bank after the deadline.
Also read: Paytm could build profitable business model with customer data, says Alchemy Capital CIO
Prior to this on February 5, Reuters reported that Reuters had reported that Paytm founder Vijay Shekhar Sharma along with a few Paytm officials had met the Reserve Bank of India (RBI) on February 5 to discuss these concerns. According to the report, the company has sought an extension of the February 29 deadline and is seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!