Shares of Paytm witnessed a 5 percent gain on February 6, marking a positive turnaround after being locked in a lower circuit for three consecutive sessions due to RBI’s restrictions on its payments bank business. The Reserve Bank of India (RBI) had recently prohibited Paytm Payments bank from accepting new deposits and conducting credit transactions after February 29.
At 9:40 am, Paytm was trading at ₹466, reflecting a rebound from the previous sessions’ downturn. The stock of Paytm’s parent company, One97 Communications, had closed 10 percent lower on February 5, resulting in a significant 41 percent loss over the past four trading sessions.
The Confederation of All India Traders (CAIT) issued an advisory urging businesses to explore alternative payment applications following the RBI’s restrictions. CAIT highlighted concerns about potential financial disruptions for small traders, vendors, hawkers, and women who heavily rely on Paytm for transactions.
In response to the crisis, Paytm founder and CEO Vijay Shekhar Sharma reassured employees that there would be no layoffs at the company despite the challenges. He emphasized that Paytm is actively engaging with the RBI to address the situation and determine the next steps.
“We are not completely sure of things… Like what exactly went wrong. But we will figure out everything soon. We will reach out to the RBI to see what can be done,” Sharma conveyed to Paytm employees.
Earlier, Sharma had expressed confidence that the Paytm app would continue to operate beyond February 29, reassuring users of uninterrupted service. He lauded the team’s dedication and commitment to overcoming challenges, emphasizing their determination to serve the nation while complying with regulatory requirements.
As Paytm navigates through the regulatory hurdles, investors and stakeholders are closely monitoring developments, hopeful for a resolution that ensures the company’s continued operations and stability in the market.
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