Paytm Share Update: Paytm shares have seen a lower circuit of 20-20 percent in the last two days. Paytm’s share price is now about 78% below its IPO offering in 2021. The company said in a recent conference call that operations should be fully normal by the beginning of March and that it is accelerating plans to partner with other banks. Meanwhile, Bombay Stock Exchange and National Stock Exchange have reduced the trading limit of Paytm to 10 percent. This means that now lower circuit will be imposed in the shares at ten percent only.
Why did RBI have to ban Paytm Bank?
Money laundering concerns and suspicious transactions worth hundreds of crores of rupees between wallet Paytm and its banking arm led the Reserve Bank of India to crack down on the entities run by Vijay Shekhar Sharma. Sources gave this information. RBI had directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. Giving information about this in a statement, RBI said that this step has been taken after the comprehensive system audit report and compliance verification report of external auditors. These reports raised concerns regarding continued non-compliance with regulations and material supervision at the payments bank. Earlier, on March 11, 2022, RBI had stopped PPBL from adding new customers with immediate effect.
One97 Communications holds 49% stake in Paytm
RBI said that Paytm Payments Bank customers will be allowed to withdraw or utilize the balance from their accounts including savings bank accounts, current accounts, prepaid medium, Fastag, National Common Mobility Card (NCMC) without any restriction. One97 Communications holds a 49 percent stake in Paytm Payments Bank Ltd. but classifies it as an associate, not a subsidiary. Sources said Paytm Payments Bank Ltd (PPBL) had millions of non-KYC (Know Your Customer) compliant accounts and in thousands of cases the same PAN was used to open multiple accounts. Sources said there are instances where the total value of transactions is in crores of rupees, raising concerns of money laundering.