Paytm, on February 9, introduced establishing of a bunch advisory committee to advise the firm on strengthening compliance and on regulatory issues.
| Photo Credit: The Hindu
Shares of Paytm proprietor One97 Communications jumped 5% in the morning trade on February 26 after Reserve Bank of India (RBI) requested retail cost settlement physique NPCI to look at the chance of migrating Paytm Payments Bank prospects utilizing ‘@paytm’ UPI deal with to different banks.
The inventory of crisis-hit fintech firm climbed 5% every to ₹428.10 and ₹427.95 apiece — additionally its higher circuit restrict — on the NSE and BSE.
In the morning trade, the 30-share BSE Sensex benchmark slumped 288.71 factors or 0.39%, whereas NSE Nifty fell 71.55 factors to 22,141.15. On February 23, the scrip of One97 Communications rallied 5% and locked in higher circuit restrict on the BSE.
In a bid to stop any disruptions in the cost ecosystem, the RBI on Friday requested the National Payments Corporation of India (NPCI) to look at the chance of migrating Paytm Payments Bank prospects utilizing the UPI deal with ‘@paytm’ to 4 to 5 different banks.
The Central financial institution got here out with further steps for the profit of consumers, pockets holders and retailers who’re availing banking providers from Paytm Payments Bank, which has been barred from accepting deposits and credit after March 15, 2024.
“As the PPBL cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the bank, and minimise concentration risk in the UPI system by having multiple payment app providers,” the RBI stated in a press release.
“NPCI has been advised by the RBI to examine the request of One97 Communication Limted (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms,” it stated.
Meanwhile, an advisory committee, arrange by One97 Communications after the Reserve Bank’s motion on its funds financial institution enterprise, is at a stage of engagement with the firm on issues associated to the phrases of reference for the panel.
The panel’s head and former chairman of Securities and Exchange Board of India M. Damodaran on February 25 stated, “We have been engaging with the group on matters relating to the Advisory Committee’s terms of reference.” He stated that the panel members are exterior advisors and at current Paytm is engaged in coping with the RBI.
On January 31, the RBI requested PPBL (Paytm Payments Bank Limited) to cease additional deposits, credit score transactions, or top-ups in any buyer accounts, pay as you go devices, wallets, FASTags, and National Common Mobility Cards, after February 29. Later, the Central financial institution prolonged the deadline until March 15.
Paytm on February 9 introduced establishing of a bunch advisory committee headed by Damodaran. The committee was set as much as advise the firm on strengthening compliance and on regulatory issues. One97 Communications Ltd (OCL) holds a 49% stake in PPBL.
