Mumbai: Following the Reserve Bank of India’s restrictions on Paytm Payments Bank Limited (PPBL), Paytm’s share price on February 1 witnessed huge selling pressure. Paytm shares opened lower at ₹608.80 apiece on BSE and touched a 20 per cent lower circuit within a few minutes of the stock market’s opening bell.
According to stock market experts, Paytm shares are under selloff pressure due to the RBI’s restrictions on PPBL. They said that the restrictions may impact the lending business of the fintech company, which generates around one-fifth of its net revenue. The stock may continue to remain under pressure till the Paytm management makes an official announcement about the impact of the RBI’s restriction on its business, they noted.
The RBI on January 31 imposed restrictions on PPBL, following a system audit report and subsequent compliance validation report of external auditors.
PPBL is barred from accepting deposits or top-ups in any customer account, wallets or FASTags after February 29 under section 35A of the Banking Regulation Act, 1949.
