New Delhi: Shares of Paytm continued to bleed on Friday, at 20 percent lower circuit for the second consecutive day, after the Reserve Bank of India directed Paytm Payments Bank to stop almost all services after February 29.
At 9.46 am shares of One 97 Communications Ltd, a Paytm parent company was trading lower by Rs 487.20, down by Rs 121.80 or 20.00 percent on the NSE within minutes after of the markets’ opening bell.
Paytm Shares BUY OR Sell? Check What Analyst Says
Shivaji Thapliyal, Head of Research and Lead Analyst, Yes Securities has said that No top-up on Paytm Wallet could potentially erode 30% of Payments revenue, while No top-up on Fastag can also have a material impact on Payments revenue.
Thapliyal added further, “We have NEVER assigned a BUY rating on Paytm and we cover it since listing, when we had assigned a SELL rating on it. We, currently, have a less-than-bullish ADD rating on the stock.”
The Reserve Bank of India on Wednesday issued a crucial directive to Paytm Payments Bank (PPBL) ordering the lender to cease taking deposits or top-ups in any user accounts, wallets, FASTTags, and other instruments after February 29. Customers may, however, request a refund, cashback, or interest at any time.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. After February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the RBI said. Additionally, its users are allowed to take out or use the balances from any of their accounts, including current accounts, savings bank accounts, prepaid cards, FASTags, and National Common Mobility Cards, as long as they have the money available,” said RBI.
“No other banking services, other than those … Like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024,” it added.
Additionally, the RBI stated that One97 Communications Ltd. and Paytm Payments Services’ “nodal accounts” must be closed as soon as possible and, in any event, no later than February 29, 2024.
Despite owning a 49% share in Paytm Payments Bank Limited, One97 Communications—the firm that owns the Paytm brand—classifies the latter as an associate rather than a subsidiary.