Paytm
One 97 Communications shares crash nearly 8% after Reserve Bank of India cancels Paytm Payments Bank licence
Mumbai/IBNS: Shares of One 97 Communications, the parent of Paytm, plunged nearly 8% to an intraday low of ₹1,057 on the NSE on Monday following regulatory action on its banking arm, according to media reports.
RBI Action Triggers Sell-off
The sharp fall in the stock came after the Reserve Bank of India withdrew the banking licence of Paytm Payments Bank, leading to the shutdown of its banking operations.
No Direct Exposure, Says Paytm
In a stock exchange filing last Friday, the company clarified that:
- It has no exposure to Paytm Payments Bank
- There are no material business arrangements with the entity
- No services are currently offered in partnership with PPBL
Independent Operations of PPBL
Paytm stated that Paytm Payments Bank operates independently, with:
- No board-level overlap
- No management involvement from the parent company
The firm also noted that it had already impaired its investment in PPBL as of March 31, 2024, ensuring no direct financial hit from the latest development.
Core Services Unaffected
The company reassured users and investors that its core offerings continue to function without disruption, including:
- Paytm app
- Paytm UPI
- Paytm Gold
- Paytm QR and Soundbox
- Card machines and Payment Gateway
-
Paytm Money
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