Paytm app to function seamlessly beyond February 29: Vijay Shekhar

Paytm app: In the wake of the Reserve Bank of India's (RBI) stringent measures against Paytm Payments Bank (PPBL), Paytm's founder, Vijay Shekhar Sharma, reassured users that the Paytm app will continue to function seamlessly beyond February 29. The RBI had directed PPBL to cease accepting fresh deposits, raising concerns about the impact on the company's primary payments business.

Attempting to allay users' concerns, Sharma took to X, stating, "Your favourite app is working; it will keep working beyond February 29 as usual." He expressed gratitude for the unwavering support from users and affirmed the team's commitment to finding solutions, emphasising their dedication to serving the nation in full compliance.

Following the stringent limitations on Paytm Payments Bank, investors flocked to sell shares of Paytm, causing the parent company, One 97 Communications Ltd, to see a 20 per cent decline in value for the second straight day. Since this is the stock's second straight downward circuit, selling is now prohibited since the stock has reached its daily maximum limit. 

PaytmKaro campaign

Sharma remained optimistic about India's position in global payment innovation and financial inclusion, with the PaytmKaro campaign leading the way. Despite the challenges, he expressed confidence in overcoming them and continuing to contribute to the nation's success.

The RBI, citing persistent non-compliance and supervisory concerns, issued directions to Paytm, prohibiting the acceptance of fresh deposits after February 29. This move followed an earlier directive on March 11, 2022, which barred PPBL from onboarding new customers.

The impact of regulatory actions manifested itself in Paytm's stock performance, with shares plummeting 20 per cent for the second consecutive day. Trading at Rs 487, the lowest in over a year and at the bottom of an exchange-imposed band, the company's shares recorded a 36 per cent decline for the week. The market response reflects investor apprehension regarding the potential implications of regulatory scrutiny on Paytm's financial outlook.

(with PTI inputs)