Shares of Paytm continued to recover for the second straight session on Wednesday as the stock surged up over 10% to hit the upper circuit.
What Happened: Paytm’s CEO, Vijay Shekhar Sharma, has reportedly sought assistance from India’s Finance Minister, Nirmala Sitharaman, following the recent restrictions imposed on Paytm Payments Bank by the Reserve Bank of India (RBI).
Sharma met with Sitharaman to discuss the impact of RBI’s clampdown on the fintech industry. However, he was advised to address the regulatory issues with the RBI directly.
Sharma had also reportedly met with RBI officials on Monday to discuss similar concerns. The RBI had earlier imposed stringent restrictions on Paytm Payments Bank due to persistent non-compliance and major supervisory concerns.
The regulator’s orders, effective from February 29, prohibit Paytm Payments Bank from accepting fresh deposits, top-ups, or credit transactions. This move followed the RBI’s observations of inadequate Know-Your-Customer procedures and material lapses in the company’s conduct, leading to transactions worth crores of rupees.
The Confederation of All India Traders has also advised traders to switch from Paytm to other payment apps due to concerns about the security and continuity of financial services.
The RBI’s clampdown on Paytm Payments Bank has had a significant impact on the company’s stock value. Paytm’s stock fell by 36% over two sessions following the RBI’s restrictions. However, the stock has shown resilience in the past two days.
Price Action: Paytm’s share price was locked in 10% upper circuit at ₹496.25 on Wednesday.
Editor’s note: Artificial Intelligence was used in the writing of this article.
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