Shares of the digital payments firm Paytm experienced a sharp decline of 20% on Friday following a regulatory clampdown by the central bank on its payments bank. Despite Paytm’s efforts to reassure investors about the potential impact on its business, the ongoing concerns continued to weigh on investor sentiment.
As of Friday, Paytm shares were priced at 487 rupees, marking their lowest point in over a year and remaining at the lower limit of an exchange-imposed trading band for the second consecutive day. The company’s shares have witnessed a substantial 36% decrease over the course of the week.
In an attempt to allay concerns among its user base, Paytm CEO Vijay Shekhar Sharma took to social media, stating, “Your favourite app is working, will keep working beyond 29 February as usual.” He further emphasized the company’s commitment to addressing challenges while operating in full compliance.
The Reserve Bank of India (RBI) had issued an order on Wednesday directing Paytm Payments Bank to halt the acceptance of fresh deposits in its accounts and popular digital wallets from March onwards. This move has raised apprehensions regarding the impact on revenues from Paytm’s primary payments business. Paytm’s leadership, including Mr. Sharma, remains dedicated to finding solutions and serving the nation within the framework of regulatory compliance.