Paytm Payments Bank

RBI's revocation of Paytm Payments Bank licence raises questions on governance lapses and what it means for One97 Communications' ambition to build a full-stack financial services platform

Paytm share price today: Paytm Payments Bank was barred from onboarding new customers with effect from March 11, 2022.

Global brokerage firm Jefferies has reiterated its "Buy" rating on Paytm (One 97 Communications Ltd), stating that the company's growth engine and profitability will remain intact despite regulatory action on its associate entity Paytm Payments Bank Ltd (PPBL). The company has maintained its price target of Rs 1,350, implying an 18 per cent upside. In its latest report, Jefferies stated that Paytm had already undertaken comprehensive structural changes over the past two years, following the regulator's 2024 restrictions on PPBL. These include shutting down the wallet business tied to the bank, migrating UPI handles to other partner banks, terminating inter-company agreements, and writing off its investment in the banking entity. Post the central bank's action, PPBL's board was reset, with a new chief executive being brought in, the brokerage firm noted. With these structural changes already complete, the brokerage said the licence cancellation itself has a low incremental impact on

Company claims no material impact despite cancellation of payments bank's licence

Regulator cites governance concerns; says bank has sufficient liquidity to repay all deposits upon winding up and will approach High Court

In January 2024, the RBI directed the bank to stop accepting new deposits, citing non-compliance with rules related to customer due diligence, use of funds and technology systems

Paytm operator's shares rose 2 per cent after RBI gave a final authorisation to operate as a payment aggregator, enabling unrestricted merchant onboarding on its platform

RBI's in-principle approval allows Paytm to resume merchant onboarding, lifting 2022 restrictions and opening the field to stronger competition in the payments space

Notably, the new development comes after China's Ant Financial exited the company last week, selling its entire 5.84 per cent stake for around ₹3,803 crore

Fintech company says feature that lets users mask specific transactions will help ensure privacy

The northward movement in the Paytm share price came after the company announced that it is shifting to direct transaction processing

The reactivation effort comes at a time when the payments bank has lost 72.25 per cent of its prepaid payment instrument (PPI) wallets from 363.15 million

Nakul Jain is the Managing Director and CEO of Paytm Payments Services Limited (PPSL). He joined PPSL in June 2022 and is in charge of the Online Payments business

Vijay Shekar Sharma emphasises the transformative impact of India's digital services sector on employment and economic growth, appreciating the efforts of 'Indian Digital Services' workers

The northward move in the stock price is fueled by the news that the company has launched UPI International, allowing Indian travelers to make UPI transactions in 6 foreign countries

The Noida-based company's outgoing CTO Manmeet Singh Dhody has been 'transitioned' to a new role as AI (artificial intelligence) fellow of the fintech major

Fintech firm One97 Communications -- the owner of Paytm brand -- has received the government's approval for downstream investment in wholly owned subsidiary Paytm Payments Services Ltd, a regulatory filing said on Wednesday. The company will reapply for a payment aggregator (PA) licence, it said. "We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the Company into PPSL. With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," Paytm filing said. The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to reapply with Press Note 3 compliance under foreign direct investment norms. As per Press Note 3, the government had made its

Currently, the annual salaries of non-executive independent directors of Paytm's board members runs into crores

Company says it's committed to 'highest compliance standards' after regulator flags related party transactions with Paytm Payments Bank in FY22

Reserve Bank of India (RBI) had approved Bansal's appointment as the MD and CEO of the payments bank, he communicated on June 20 to IDBI Bank