Shares of One97 Communications Ltd (Paytm) experienced a decline of nearly 3 percent on Thursday, continuing its downward trend for the fourth consecutive session. This drop occurred just ahead of the Reserve Bank of India’s (RBI) March 15 deadline for Paytm Payments Bank.
Initially, Paytm shares witnessed a sharp decline in early trading hours. However, the stock regained some momentum and was trading 0.84 percent lower at Rs 348 around 11:40 am.
Over the past five sessions, Paytm shares have seen a decline of over 12 percent. Although the company's shares had a marginal increase of 1.7 percent this month, they have recorded a significant drop of nearly 60 percent over the past six months and 46 percent since the beginning of this year.
Investor Caution Ahead of Deadline:
Investors have become cautious due to the looming March 15 deadline, despite reports indicating that The National Payments Corporation of India (NPCI) is in the process of certifying Paytm's application to operate as a third-party payment app. This certification would enable Paytm customers to use the app for payments via the unified payment interface (UPI).
However, concerns persist as Paytm Payments Bank faces potential closure by March 15 due to regulatory action from the RBI over compliance issues. According to sources mentioned in an ET report, Axis Bank, YES Bank, HDFC Bank, and State Bank of India (SBI) are poised to support Paytm's consumer-facing UPI payments.
A spokesperson from Paytm stated, "One 97 Communications and its services, including the Paytm app, and merchant devices like Paytm QR, Soundbox, and Card Machines, continue to operate without interruption."
It's noteworthy that on Thursday, the National Highways Authority of India (NHAI) urged Paytm FASTag users to transition to FASTags offered by other banks.
