Paytm share price continued witnessing strong selling pressure as the stock hit its 20 per cent lower circuit for the second consecutive session on Friday, February 2.
Paytm share price opened at its 20 per cent lower circuit at ₹487.05 against the previous close of ₹608.80 on the BSE on Friday.
Paytm share price cracked 20 per cent in the previous session as well on Thursday after RBI action on Paytm Payments Bank (PPBL).
The Reserve Bank of India (RBI) on January 31 imposed restrictions on Paytm Payments Bank, following a system audit report and subsequent compliance validation report of external auditors.
PPBL is barred from accepting deposits or top-ups in any customer account, wallets or FASTags after February 29 under section 35A of the Banking Regulation Act, 1949.
The RBI further mentioned that the Nodal Accounts of One97 Communications and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.
Also Read: RBI bars Paytm Payments Bank from accepting deposits in any customer account from next month
Paytm will take steps immediately to comply with the RBI’s directions on Paytm Payments Bank, the fintech company said in a statement on Thursday. Paytm added that it expects to have a worst-case impact of ₹300 to 500 crores on its annual EBITDA going forward but it expects to continue on its trajectory to improve its profitability.
After the RB action, One 97 Communications (OCL), the parent of Paytm, in an exchange filing on Thursday, February 1, said it will partner with other banks and not with Paytm Payments Bank (PPBL).
"OCL has already been working with other banks for the last two years. We will now accelerate the plans and completely move to other bank partners. Going forward, Paytm will be working only with other banks, and not with PPBL," the company said.
"With regard to the direction on termination of the nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL are in the process of moving the nodal account to other large commercial banks," said the company.
The company believes OCL’s marketing and financial services business are not affected due to directions towards PPBL.
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