Paytm Shares Witness 20% Drop for Second Consecutive Day Amid RBI Restrictions
Paytm shares faced intense selling pressure, plunging 20% for the second consecutive session on Friday, February 2. The stock had already cracked by 20% the previous day following the Reserve Bank of India’s (RBI) action on Paytm Payments Bank (PPBL).
The RBI imposed restrictions on PPBL on January 31, citing a system audit report and compliance validation by external auditors. PPBL is now prohibited from accepting deposits or top-ups in any customer account, wallets, or FASTags after February 29, invoking section 35A of the Banking Regulation Act, 1949.
The central bank also directed the termination of the Nodal Accounts of One97 Communications and Paytm Payments Services Ltd. by no later than February 29, 2024.
In response, Paytm issued a statement on Thursday, expressing its commitment to complying with the RBI’s directions. The fintech giant anticipates a worst-case impact of ₹300 to 500 crores on its annual EBITDA but remains optimistic about continuing its trajectory to enhance profitability.