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Paytm crisis highlights: Company's businesses unaffected by RBI curbs, says firm

Paytm Share Price Live: Paytm's shares dropped day after the Reserve Bank of India barred Payments Bank from accepting new deposits after February 29
Summary

Paytm shares LIVE: Online payments platform Paytm's investors are a worried lot a day after the Reserve Bank of India barred it from accepting new deposits after February 29.

A smartphone with the Paytm logo is placed on a laptop in this illustration
A smartphone with the Paytm logo is placed on a laptop in this illustration

Paytm Share Price Live: Fintech firm Paytm's shares dropped by 20 per cent day after the Reserve Bank of India barred its lending arm Payments Bank from accepting new deposits.
On Wednesday, the bank regulator ordered Paytm Payments Bank, an associate of Paytm, to stop accepting fresh deposits in its accounts or popular wallets from March, raising worries that the move could erode revenue from the company's main payments business.

The move comes two years after the RBI had barred Paytm Payments Bank from on boarding new customers. “Reserve Bank of India has today, in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers," the RBI had stated in its notification on March 11, 2022.
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Feb 1, 2024 4:01 PM IST

Paytm rules out impact of RBI curbs on Payments Bank. What he said?

Paytm said the company will only work with other banks and not the Paytm Payments Bank.

Feb 1, 2024 3:36 PM IST

Stock trails at ₹600 mark at market close

The shares of Paytm continued to languish at 600 market at the closure of stock market. The stock had opened 20 per cent down at opening.

Feb 1, 2024 3:22 PM IST

What can Paytm do next after RBI curbs?

Paytm can now appeal to the department within the RBI that passed the order and later to the central bank’s board, the people said. The company also can seek legal action through courts. Still, the RBI’s stance is that it doesn’t want Paytm to operate a payments bank anymore, the people said

Feb 1, 2024 3:00 PM IST

Paytm crisis LIVE: RBI audit found money and data traffic flows Paytm Payments Bank Ltd. rest of the Paytm universe

A technical audit by the Reserve Bank of India found money and data traffic flows between the tightly regulated Paytm Payments Bank Ltd. and the rest of the Paytm universe that created accounting and supervisory problems, according to people familiar with the matter. The regulator had warned Paytm about such issues before, but they remained unresolved, the people said, asking not to be identified because the matter isn’t public, Bloomberg reported.

Feb 1, 2024 2:42 PM IST

Can Paytm Payments Bank meet cash outflows?

Can Paytm Payments Bank meet cash outflows?
Paytm Payments Bank's deposits are held in government bonds and deposits at other banks, liquidity should be readily available, said a source familiar with the matter. The bank may not need any special liquidity line from the central bank, Reuters reported

Feb 1, 2024 2:22 PM IST

Paytm crisis LIVE: What bankers think about RBI curbs?

“Private banks that were once gung ho on Paytm will now be cautious to take on new partnerships post the RBI flack,” a banker with a midsize private bank told Reuters. A banker at a state-run bank said banks will demand a complete resolution of the RBI's concerns before taking on any new partnerships with Paytm.

Feb 1, 2024 2:17 PM IST

RBI curbs on Paytm to affect FASTag, NCMC card on platform? Fintech firm clarifies

Fintech firm Paytm has taken to social platform X to clarify some doubts of the customers after the Reserve Bank of India asked its subsidiary Paytm Payments Bank to stop accepting new deposits from February 29. The fresh RBI curbs have left customers with several questions unanswered by the firm. Deep dive

Feb 1, 2024 1:58 PM IST

Paytm crisis LIVE: Will NCMC card stop working? Paytm responds

Will the NCMC cards stop working after the RBI curbs? Here's what Paytm replied:

"You can continue using the existing balances on your NCMC Cards. We started our journey of working with other banks over the last two years, which we will now accelerate".

“We are working on effective solutions to ensure a seamless customer experience and will keep you updated”, the payments platform added.

Feb 1, 2024 1:46 PM IST

Paytm share price LIVE: Sensex down by 91.58 points at 71,660

Paytm share price LIVE: Sensex down by 91.58 points at 71,660

Feb 1, 2024 1:08 PM IST

Paytm share price LIVE: Stock price unchanged since opening trade

Paytm stock price unchanged at 608 since opening trade. The shares had opened 20 per cent down when market opened

Feb 1, 2024 11:36 AM IST

Paytm share price LIVE: JPMorgan cuts firm's rating to "underweight" from "neutral"

"While we don't believe that the order is an end of the road for Paytm, it materially impacts near term growth, profitability, forces another pivot and necessitates it to restore credibility of durability of the business," JPMorgan analysts wrote in a note.

JPMorgan cut Paytm's rating to "underweight" from "neutral" and slashed target price to 600 rupees from 900 rupees.

Feb 1, 2024 11:26 AM IST

Paytm share price LIVE: Fintech firm to witness ₹300-500 crore on annual operational profit

Fintech firm Paytm sees an impact of 300-500 crore on its annual operational profit as its customers will not be able to add money to their wallets, FASTag etc following RBI barring Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account. In December, 41 crore UPI remittances were made through Paytm Payments Bank Ltd (PPBL).

Feb 1, 2024 11:16 AM IST

Paytm share price LIVE: RBI curbs a precursor to Payments Bank licence being cancelled?

The RBI's decision to stop Paytm Payments Bank from new business could be a precursor to its licence being cancelled, Reuters reported.

The central bank stopped Paytm Payments bank from taking fresh deposits, facilitating credit and fund transfers after Feb. 29. This period will allow customers to unwind their deposits and transactions with Paytm Payments Bank and prevent a systemic impact, report added

Feb 1, 2024 11:01 AM IST

Nirmala Sitharaman presents Interim budget 2024 in Parliament

Nirmala Sitharaman presents Union budget 2024 in Parliament, the Modi government's last budget before Lok Sabha election. LIVE coverage

Feb 1, 2024 10:57 AM IST

Stock market update: Sensex up by 258 points at 72,015; Nifty at 21,791

Sensex is up by 258 points at 72,015 at 10:55 am. NSE index Nifty is trading in green at 21,791. LIVE updates

Feb 1, 2024 10:43 AM IST

Budget 2024: When & where to watch live telecast of Nirmala Sitharaman's speech

At 11 am, the Union finance minister will unveil the final budget of the second term of the Narendra Modi government. Sitharaman, the first woman to hold the finance portfolio on a full-time basis, will become only the second finance minister to present six consecutive budgets. Check details

Feb 1, 2024 10:31 AM IST

Budget 2024: Finance minister Nirmala Sitharaman meets President Murmu, will present budget shortly

Finance Minister Nirmala Sitharaman on Thursday called on President Droupadi Murmu before presenting the pre-election Budget for 2024-25. As per established tradition, the finance minister met the President at the Rashtrapati Bhawan before heading to Parliament. LIVE coverage

Feb 1, 2024 10:22 AM IST

Paytm share price live: Fintech firm's market cap eroded by ₹9,646 crore in early trade

At the NSE, Paytm shares tumbled 19.99 per cent to hit the lowest trading permissible limit for the day of 609.

The company's market capitalisation (mcap) also eroded by 9,646.31 crore to 38,663.69 crore in early trade.

However, any interest, cashbacks, or refunds may be credited back to customers anytime.

Feb 1, 2024 10:04 AM IST

Paytm share price LIVE: A look at previous RBI actions against Paytm Payments Bank

This is not for the first time that Paytm Payments Bank, launched in November 2017, finds itself in trouble. Here is a look at its past troubles

Feb 1, 2024 9:48 AM IST

Paytm share price LIVE: Fintech firm sees up to ₹500 crore hit from RBI ban on its payments bank

Paytm said on Thursday that it anticipates a potential adverse impact on its annual earnings in the range of 300 to 500 crore due to the Reserve Bank of India's directive preventing its subsidiary, Paytm Payments Bank, from accepting new deposits starting in March. Deep dive

Feb 1, 2024 9:40 AM IST

Paytm share price LIVE: ‘Pure Doglapan’, says BharatPe co-founder Ashneer Grover on RBI curbs

Bharat Pe co-founder Ashneer Grover has hit out at the Reserve Bank of India after the central bank barred Paytm Payments Bank from accepting new deposits from February 29. Deep dive

Feb 1, 2024 9:31 AM IST

Paytm share price LIVE: ‘Would be a crying shame if…’, says Sena (UBT) MP on RBI curbs

Sena (UBT) MP Priyanka Chaturvedi takes to social platform X. She says,"Seen people mocking Paytm and the trouble brewing for them thanks. to an RBI order. Agree their full page ad mocked the plight of people who stood in endless queues after demonetisation however it was their company that onboarded people to help go digital. Whatever PayTM founder’s political leaning it is unfortunate that RBI has put brakes on a promising fintech company, hopefully the issue would be resolved soon and RBI and GoI, like in the past, handheld traditional banks that were stressed/faced systemic issues, for the sake of customers and small businesses, will do the same with digital banking companies that show promise and help Indians go digital in their financial transactions. Would be a crying shame if Indian fintech companies lose to the likes of big global techs like GPay or WhatsApp.

Feb 1, 2024 9:26 AM IST

Paytm share price LIVE: On Union Budget day, Sensex opens flat at 71,760, Nifty nears 21,730

On Union Budget day, Sensex opens flat at 71,760, Nifty nears 21,730

Feb 1, 2024 9:22 AM IST

Paytm Share Price Live: Shares tumble 20% day after RBI's curb

Paytm shares have tumbled 20% day after RBI's curb on Payments bank. On opening, the shares were trading at 608 as against the previous day's close of 761 a piece

Feb 1, 2024 9:07 AM IST

Paytm Share Price Live: RBI's action against Paytm Payments Bank explained

The Reserve Bank of India barred Paytm Payments Bank Ltd from accepting fresh deposits and making credit transactions. India's apex bank said in a statement that the action was precipitated by the bank's "persistent non-compliances". Deep dive

Feb 1, 2024 8:57 AM IST

Paytm's stock to underperform after RBI's move: Jefferies

Jefferies double downgraded Paytm's stock to "underperform" after the RBI's move and slashed its target price to 500 rupees from 1,050 rupees, saying regulatory and reputational issues can each impact 20%-30% of EBITDA. The stock, which rose 20% in 2023 and the same amount so far this year, closed at 761.2 rupees on Wednesday.

Feb 1, 2024 8:57 AM IST

Paytm's stock to underperform after RBI's move: Jefferies

Jefferies double downgraded Paytm's stock to "underperform" after the RBI's move and slashed its target price to 500 rupees from 1,050 rupees, saying regulatory and reputational issues can each impact 20%-30% of EBITDA. The stock, which rose 20% in 2023 and the same amount so far this year, closed at 761.2 rupees on Wednesday.

News business Paytm crisis highlights: Company's businesses unaffected by RBI curbs, says firm