As the RBI’s February 29 deadline for Paytm Payments Banks nears, there are reports that the Reserve Bank of India is likely to release more detailed clarifications on this issue. A senior government official recently said that given the size of the user base of Paytm, it would be necessary to clear confusion. Talking to media during a post-budget interaction, financial services secretary Vivek Joshi also added that so far, the finance ministry has not sought any report on the fintech crisis.
Talking about the issue, Joshi also said that as corporate entities grow in size, they can’t survive in isolation. The companies will have to follow the ‘laws of the land,’ the government official added.
Meanwhile, shares of One97 Communications Ltd, the parent company of the Paytm brand, surged by 10 percent, extending its recovery trajectory on Wednesday morning.
The stock saw a robust opening, jumping by 9.99 percent to Rs 496.75 on the BSE, while on the NSE, it climbed by the same percentage to Rs 496.25. This significant rebound follows a 3 percent increase in the company’s stock on Tuesday, marking a reversal after three consecutive days of sharp declines. Between February 1 and 5, spanning three trading days, the company’s stock had plummeted by over 42 percent, resulting in a loss of Rs 20,471.25 crore in market valuation, prompted by the RBI’s regulatory actions.