Shares of One97 Communications climbed 10 per cent on Wednesday morning, after the news. The stock jumped 9.99 per cent to Rs 496.75 on the BSE after a firm beginning.
Vijay Shekhar Sharma, the founder of Paytm, met with Finance Minister Nirmala Sitharaman regarding the recent order from the Reserve Bank of India (RBI) to halt the services of its banking arm, Paytm Payment Bank Limited (PPBL). According to media reports, Sharma also met with RBI officials regarding the same issue.
During the meeting, which took place on Tuesday in New Delhi, Sharma discussed ways to address the concerns of the central bank. The stocks climbed 10 per cent on Wednesday morning after the reports.
"Discussions are on about addressing the regulatory concerns and compliance issues with both the RBI and the ministry," Reuter reported citing its sources.
The meetings come after the RBI asked Paytm Payments Bank last Wednesday to stop accepting new deposits in its accounts and its popular digital wallets from March, citing supervisory concerns and non-compliance with rules.
The company has sought an extension of the Feb. 29 deadline from the RBI and has also been seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag, the international news agency reported.
"The RBI heard Paytm out without making any commitments," a second source said. Although, neither RBI nor the Finance Ministry has responded to the development.
Meanwhile, The stock jumped 9.99 per cent to Rs 496.75 on the BSE after a firm beginning. Shares of the company climbed 9.99 per cent to Rs 496.25 on the NSE.
The stock of One97 Communications Ltd rebounded by over 3 per cent on Tuesday after three days of sharp fall.
From February 1-5 (three days of trading), the company's stock tumbled over 42 per cent, wiping out Rs 20,471.25 crore from its market valuation, following the RBI's crackdown.
Paytm Payments Bank Limited (PPBL) is an associate of One97 Communications Limited (OCL).
One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Founder Sharma has a 51 per cent stake in the bank.