Wednesday, July 24, 2024
Outlook India
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Paytm Upi Lite

Addressing the reporters after the MPC statement, RBI's deputy governor Swaminathan J said the actions against the fintech have been taken due to persistent non-compliance.

Vivek Joshi stated that Paytm Payments Bank Ltd (PPBL) is a small financial entity and there are no systemic stability concerns.

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.

HDFC Bank's country head for payments Parag Rao, while replying to a question on Paytm, indicated that talks in going on to help the distressed fintech.

ED and FIU are already probing matters related to the payment gateway under provisions of the anti-money laundering law. 

Paytm Wallet users can continue to carry on transactions till February 29. However, after February 29, they will be able to use their existing balance till the time it is exhausted, but cannot add any money to their account. 

Paytm has been in talks with Jio Financial Limited since November of last year, while discussions with the banking giant HDFC started ahead of the RBI's action on the fintech.

The stock tanked 10 per cent to Rs 438.35 -- its lowest trading permissible limit for the day -- on the BSE.

Noida-based fintech Paytm which is owned by One97 Communications is in controversies following the Reserve Bank of India's action. The top bank has ordered the fintech to shut down its operations run by its payment bank arm.

The company is mired in controversy following a recent RBI order that barred Paytm Payments Bank Ltd to not taking any further deposits conducting credit transactions or carrying out top-ups on any customer's accounts