One97 Communications Ltd, commonly known as Paytm, will be under scrutiny on Tuesday following statements by Reserve Bank of India (RBI) Governor Shaktikanta Das, who emphasized that the central bank would not reconsider the regulatory measures imposed on Paytm Payments Bank. This comes amidst reports suggesting Paytm’s potential approval for investment in its payments gateway arm. Paytm clarified to stock exchanges that while its subsidiary, Paytm Payments Services Limited (PPSL), has applied for government approval regarding downstream investments, awaiting the decision.
Additionally, Axis Bank’s Managing Director and Chief Executive Officer, Amitabh Chaudhry, expressed readiness to collaborate with Paytm pending approval from the RBI.
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On January 31, the RBI directed Paytm Payments Bank to cease most operations, including credit products, deposits, and digital wallets, citing persistent non-compliance. Paytm responded by stating it would solely engage with other banks, excluding Paytm Payments Bank Limited.
Since the directive, Paytm shares have plummeted by 45%, with significant declines in five out of eight trading sessions. However, the stock showed a modest increase of 0.65% to close at Rs 422.60 on Monday.
In response to queries, Das reiterated that the RBI’s decisions are meticulously considered and not made casually. Paytm reiterated its commitment to fulfilling disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Paytm emphasized its ongoing efforts to serve existing online merchant partners while awaiting government approval for downstream investments.
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