PayTM share price slump today: RBI also said the 'nodal accounts' of One97 Communications Ltd (OCL) and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024.
Depending on the nature of the resolution, Paytm expects RBI s action to have a worst-case impact of Rs 300 to 500 crores on its annual EBITDA going forward.
Paytm RBI ban: Macquarie said the RBI had taken 15 months time to revoke its ban on digital business activities of the largest private sector bank. But in Paytm's case, the RBI has conducted a comprehensive IT audit.
In a surprising move, the Reserve Bank of India (RBI) has restricted all services provided by Paytm Payments Bank (PPBL), effective February 29, 2024. Debit and credit transactions, including wallet operations, cease post this date, with withdrawals allowed. Fund transfers, bill payments, and UPI facilities through Paytm will also be halted. Users linked to external banks are unaffected. Paytm wallet services and Fastag operations will be disrupted, but stock market and mutual fund services remain unaffected.
Paytm: The Reserve Bank of India (RBI) has instructed Paytm s payments bank subsidiary to cease accepting new deposits, signaling a potential cancellation of its license. Paytm Payments Bank, which operates as a specialized banking entity, cannot offer credit services or facilitate fund transfers after February 29. Paytm has stated it will comply with the RBI s directions and expects an impact of up to INR 5 billion ($36 million) on its annual earnings. The move adds to regulatory concerns surrounding Paytm s business, but liquidity should not be an issue as the bank s deposits are held in government bonds and other banks.