Investors question if Paytm Payments Bank can thrive without regulator s trust. The Reserve Bank of India s ban on deposit or credit transactions has frozen the bank. Paytm can switch fintech customers to another institution but the ban signals regulatory concerns. The RBI s ban follows persistent non-compliances and material supervisory concerns. It also mandates termination of accounts of One 97 Communications and Paytm Payments Services. Confidence in Paytm s mainstream business and banking partners may be affected. Paytm s goal to turn profitable may be delayed. The investment case for Paytm weakens.
Stock Market today: Paytm (One 97 Communications) share price saw a sharp dip of 20% post RBI imposing restrictions on some services. JM Financial sees meaningful impact on valuations. Also Check for 2 major impact on Paytm as highlighted by JM Financial Institutional Securities
Indian regulators ordered the parent of digital-payments provider Paytm to halt a bulk of its business, dealing a severe blow to a high-profile tech pioneer that grappled for years with regulators and criticism around its Chinese backing.
Shares of One97 Communications Ltd (OCL/(Paytm) hit lower band of 20% during morning trading Thursday at Rs609 on NSE following action by Reserve Bank of India (RBI) against Paytm Payments Bank Ltd, an associate of OCL