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NEW DELHI: Paytm shares jumped again by 5 per cent in the early trade on Tuesday after the Reserve Bank of India (RBI) asked the retail payment settlement body the National Payments Corporation of India (NPCI) to examine the possibility of Paytm Payments Bank customers switching to other banks.
The Paytm stock hit fresh upper circuit hours after its founder Vijay Shekhar Sharma resigned as the non-executive chairman and board member of Paytm Payments Bank Ltd (PPBL).
Vijay Shekhar Sharma stepped down as the company faces regulatory hurdles from the Reserve Bank of India (RBI).
Sharma’s decision comes after the RBI asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, by March 15, citing non-compliance with certain norms.
Paytm owner One97 Communications’s stock climbed 5 per cent each to Rs 428.10 and Rs 427.95 on the NSE and BSE.
In the morning trade, the 30-share BSE Sensex benchmark slumped 288.71 points or 0.39 per cent, while NSE Nifty fell 71.55 points to 22,141.15.
On Friday, the scrip of One97 Communications rallied 5 per cent and locked in upper circuit limit on the BSE ahead of the meeting between fintech heads, Union finance minister Nirmala Sitharaman and RBI officials.
According to the RBI, India’s banking regulator has suggested the National Payments Corporation of India (NPCI) to consider Paytm’s proposal to become a platform for peer-to-peer payments.
The move indicates a possible softening of the RBI’s position.
“NPCI has been advised by the RBI to examine the request of One97 Communication Ltd (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 said.
Meanwhile, an advisory committee, set up by One97 Communications after the Reserve Bank’s action on its payments bank business, is at a stage of engagement with the company on matters related to the terms of reference for the panel.
The panel’s head and former chairman of Sebi M Damodaran on Sunday said, “We have been engaging with the group on matters relating to the Advisory Committee’s terms of reference.”
He said that the panel members are external advisors and at present Paytm is engaged in dealing with the RBI.
On January 31, the RBI asked PPBL (Paytm Payments Bank Ltd) to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29. Later, the central bank extended the deadline till March 15.
Paytm on February 9 announced setting up of a group advisory committee headed by Damodaran. The committee was set up to advise the company on strengthening compliance and on regulatory matters.
One97 Communications Ltd (OCL) holds a 49 per cent stake in PPBL.
(With PTI input)
The Paytm stock hit fresh upper circuit hours after its founder Vijay Shekhar Sharma resigned as the non-executive chairman and board member of Paytm Payments Bank Ltd (PPBL).
Vijay Shekhar Sharma stepped down as the company faces regulatory hurdles from the Reserve Bank of India (RBI).
Sharma’s decision comes after the RBI asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, by March 15, citing non-compliance with certain norms.
Paytm owner One97 Communications’s stock climbed 5 per cent each to Rs 428.10 and Rs 427.95 on the NSE and BSE.
In the morning trade, the 30-share BSE Sensex benchmark slumped 288.71 points or 0.39 per cent, while NSE Nifty fell 71.55 points to 22,141.15.
On Friday, the scrip of One97 Communications rallied 5 per cent and locked in upper circuit limit on the BSE ahead of the meeting between fintech heads, Union finance minister Nirmala Sitharaman and RBI officials.
According to the RBI, India’s banking regulator has suggested the National Payments Corporation of India (NPCI) to consider Paytm’s proposal to become a platform for peer-to-peer payments.
The move indicates a possible softening of the RBI’s position.
“NPCI has been advised by the RBI to examine the request of One97 Communication Ltd (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 said.
Meanwhile, an advisory committee, set up by One97 Communications after the Reserve Bank’s action on its payments bank business, is at a stage of engagement with the company on matters related to the terms of reference for the panel.
The panel’s head and former chairman of Sebi M Damodaran on Sunday said, “We have been engaging with the group on matters relating to the Advisory Committee’s terms of reference.”
He said that the panel members are external advisors and at present Paytm is engaged in dealing with the RBI.
On January 31, the RBI asked PPBL (Paytm Payments Bank Ltd) to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29. Later, the central bank extended the deadline till March 15.
Paytm on February 9 announced setting up of a group advisory committee headed by Damodaran. The committee was set up to advise the company on strengthening compliance and on regulatory matters.
One97 Communications Ltd (OCL) holds a 49 per cent stake in PPBL.
(With PTI input)
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