The Reserve Bank of India (RBI) clamped down on Paytm Payments Bank on January 31, 2023, barring it from taking any deposits or credit transactions or top-ups in any of its customer accounts. The central bank also stopped Paytm Payments Bank from providing any other banking services, such as UPI facility and fund transfers, after February 29, 2024.
Paytm’s share price has been on a free fall since then, hitting the lower circuit in three sessions (Feb 5, Feb 2, and Feb 1). From reports floating about Jio Financial Services and HDFC Bank being in talks to acquire Paytm’s wallet business to Vijay Shekhar Sharma assuring its employees about no further job cuts, a lot has happened in the company since the central bank’s action.
We are running this live blog to keep you updated with the latest happenings at Paytm. Here’s a quick rundown on the major developments so far:
Feb 5, 2024, 17:10 IST: Exchanges seek clarification from Jio Financial Services and Paytm on reports that the former is talks with the latter to acquire its wallet business.
Feb 5, 2024, 15:30 IST: Paytm rejected a report which said it was in talks with various companies, including Jio Financial Services and HDFC Bank, to sell its wallet business. Read more
Feb 5, 2024, 15:20 IST: Revenue secretary Sanjay Malhotra said that law enforcement agencies will probe Paytm if needed but at the moment there is no such action afoot. Earlier, Paytm said it was not facing any investigation from the ED. Read more
Feb 5, 2024, 13:30 IST: Shares of Jio Financial Services jumped over 16% in the intraday trading on the BSE as a report said it was among the leading contender to acquire the wallet business of Paytm.
Feb 5, 2024, 10:00 IST: BSE and NSE halved the circuit limits for Paytm to 10% from 20% earlier after the company’s shares hit the lower circuit in the previous two sessions. Read more
Feb 4, 2024, 12:49 IST: Traders body CAIT asks traders and businesses to switch from Paytm to other payment platforms for business-related transactions, in the aftermath of RBI’s crackdown on Paytm. Read more
Feb 3, 2024: In a townhall, Paytm founder Vijay Shekhar Sharma assured all its staff that there would be no layoffs and the company has been in talks with the RBI. Read more
Feb 2, 2024, 22:52 IST: RBI mulls the cancellation of the operating licence of Paytm Payments Bank next month, post 29 Feb 2024. Read more
Feb 2, 2024, 18:10 IST: During an investor call, Paytm’s top management assured analysts of major brokerages and advisories that the fintech giant was in discussions with the RBI to find the way forward and spelled out some of the steps the company would take to resolve the issue. Read more
Feb 2, 2024, 9:10 IST: Paytm’s founder took to X to say that the app will continue to work beyond February 29, in what was his first public statement after the RBI’s order. Read more
Feb 2, 2024, 9:16 IST: Shares of Paytm were locked at the lower circuit limit of 20% for the second consecutive session after slipping below the INR 500 mark. Read more
Feb 1, 2024, 16:46 IST: Several startup founders and VCs came out in support of Paytm CEO and founder Sharma following the RBI’s actions on Paytm Payments Bank. Read more
Feb 1, 2024, 9:15 IST: Shares of Paytm slumped 20%, hours after the RBI’s order. Read more
Feb 1, 2024, 23:25 IST: Sharma informed exchanges that he has not taken any margin loans, or pledged any shares, whether directly or indirectly owned by him. Read more
Feb 1, 2024, 8:48 IST: In an exchange filing, Paytm said it expects its annual EBITDA to take INR 300-500 Cr hit following the central bank’s action on its payments bank. Read more
31 Jan 2024, 17:10 IST: RBI bars Paytm Payments Bank from any deposits or credit transactions, or top-ups in any of its customer accounts. RBI further said Paytm Payments Bank can also not provide any other banking services, such as UPI facility and fund transfers after February 29, 2024. Read more
