Last Updated: March 04, 2024, 11:34 IST
Paytm Shares (Representative picture)
If the RBI finally ends up revoking PPBL’s licence, it will be the primary time in over 20 years that the banking regulator would take such an motion
Shares of One97 Communications, proprietor of the Paytm model, fell one other 3 per cent amid reviews that with lower than two weeks to go for Paytm Payments Bank Limited (PPBL) to stop operations, the Reserve Bank of India (RBI) could take the unprecedented step of revoking its banking licence.
If the RBI finally ends up revoking PPBL’s licence, it will be the primary time in over 20 years that the banking regulator would take such an motion.
The RBI, on January 31, imposed enterprise restrictions on Paytm Payments Bank, together with a bar on accepting contemporary deposits and doing credit score transactions after March 15. The regulator discovered main irregularities in KYC, which uncovered the purchasers, depositors and pockets holders to severe dangers. The inventory has taken a steep hit for the reason that RBI crackdown.
Shares of One97 Communications are buying and selling 10.60 factors, or 2.56 per cent decrease at 403.85 per fairness share. During Friday’s buying and selling session, Paytm opened at Rs 424.05 and closed at Rs 425.45, with a excessive of Rs 430 and a low of Rs 410.05. The 52-week excessive for Paytm was Rs 998.3 whereas the 52-week low was Rs 318.35.
Earlier, the Financial Intelligence Unit (FIU-IND) had imposed a penalty of Rs 5.49 crore on PPBL for violating guidelines underneath the Prevention of Money Laundering Act (PMLA).
“The money generated from these illegal operations, that is, the proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank,” the ministry assertion stated.
The controversy has pressured Paytm founder Vijay Shekhar Sharma to resign as half-time non-government chairman and board member of the funds financial institution. Sharma owns 51 per cent within the funds’ financial institution, whereas One97 Communications owns 49 per cent. The strikes got here forward of the RBI’s March 15 deadline for PPBL to wind up its operations.
Paytm has been on the radar of RBI since 2018 for regulatory violations.
