Paytm Shares Plummet 40 Percent in Two Days Following RBI Clampdown

Paytm Shares Plummet 40 Percent in Two Days Following RBI Clampdown

VoM News Desk | February 2, 2024 | 12:09 PM IST | Breaking News | Follow on Google News

Paytm Shares Plummet 40 Percent in Two Days Following RBI Clampdown/Reuters

Paytm Shares Plummet 40 Percent in Two Days Following RBI Clampdown

Shares of digital payments firm Paytm experienced a sharp decline of 20% on Friday, extending the impact of the Reserve Bank of India’s (RBI) restrictions on its payments bank. Despite efforts by Paytm to reassure users and investors, the stock reached 487 rupees, marking its lowest point in over a year and staying at the bottom of the exchange-imposed trading band for the second consecutive day. This brings the total decline for the week to 36%.

CEO’s Reassurance Amidst Turmoil

Attempting to address concerns, Paytm CEO Vijay Shekhar Sharma assured users in a post on X that the app will continue working as usual beyond February 29. He emphasized the company’s commitment to finding solutions for challenges and serving the nation in full compliance.

RBI’s Directive Impact on Paytm

The RBI’s order directed Paytm Payments Bank to cease accepting fresh deposits in its accounts or popular digital wallets from March. This move has raised apprehensions about the impact on revenues from Paytm’s primary payments business, contributing to the significant decline in the company’s stock value. The situation highlights the challenges faced by fintech companies in navigating regulatory frameworks in the rapidly evolving digital payments landscape.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.