Paytm Stock Dips 6% Despite ₹103 Crore Block Deal

8 Feb 2024 , 12:03 PM

The majority of the gains achieved on February 7 were lost as shares of Paytm (One 97 Communications) dropped by around 7% at opening on the NSE on February 8.

Paytm ended the day 10% higher on February 7. This happened after the shares dropped by about 42% over the course of three sessions following the RBI’s restrictions on its payments bank business. This occurred when almost 21 lakh shares, or 0.3% of the equity, valued at ₹103 Crore, were exchanged. On February 8, at 9:20 a.m., the stock was trading at ₹463.

On January 31, the Reserve Bank of India (RBI) ordered Paytm Payments Bank to impose limitations on Paytm. The digital lender was also requested to cease taking deposits, credit transactions, or top-ups in any customer accounts, prepaid cards, wallets, FASTags, and NCMC cards thereafter. Refunds or cashbacks are not included in this.

Additionally, the payments bank has been instructed by the RBI to settle all pipeline transactions and nodal accounts by March 15. However, sources have revealed that the Reserve Bank of India (RBI) is thinking about revoking Paytm Payments Bank’s license after the cutoff date.

Previous to this, on February 5, Reuters reported that the Reserve Bank of India (RBI) had been consulted about these issues by Paytm founder Vijay Shekhar Sharma and a few other Paytm officials. The report claims that the company has asked the central bank for clarification over the transfer of its license for the wallets business and digital highway toll payment service Fastag, as well as an extension of the deadline of February 29.

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