Lalan runs a tea shop in Noida Film City. Every day hundreds of people come to his shop to drink tea. Today, people going to his shop to drink tea during the break between office work are noticing some changes. When people are looking for a scanner to make payments, they are getting another soundbox instead of Paytm’s soundbox. After payment, people are hearing the voice of Amitabh Bachchan instead of the old voice of Paytm Soundbox.
Shopkeepers started removing Paytm
For a common man, this change may be very big. It may not seem like it, but this small change is indicating big trouble for the fintech company Paytm, which is facing problems from all sides. After the recent action of RBI on Paytm, the market of discussions is hot. Lalan’s tea shop is also becoming the center of discussions on the future of Paytm. After the action of the Reserve Bank on January 31, many such news are coming out which are making the sentiment negative. Due to this, not only Lalan, but many shopkeepers have distanced themselves from Paytm.
Reserve Bank has taken this action
Now let’s talk about the problems of Paytm. Paytm’s parent company is One97 Communications, which does a variety of work ranging from financial services to e-commerce. Financial services are done through subsidiary Paytm Payments Bank. The recent action taken by the Reserve Bank is actually only on Paytm Payments Bank. The Reserve Bank has immediately stopped Paytm Payments Bank from adding new customers or giving loans.
Impact of action on these services
After February 29, services like Wallet, Fastag are also affected. Are going to happen. From next month, customers will neither be able to add money to Paytm wallet nor will they be able to recharge Fastag. Money will not be deposited in the account of Paytm Payments Bank. If you already have money in your wallet, Fastag or account, there is no restriction on their withdrawal, transfer or use. Talking about Paytm app, it will continue to work like a normal UPI app, because the operation of the app is not done by the subsidiary Paytm Payments Bank, but directly by the parent company One97 Communications.
Banking license may be cancelled.
Anyway, we were talking about the problems of Paytm. There are reports in some circles of the media that the permit of Paytm Payments Bank may be cancelled. A Bloomberg report says that Paytm’s banking license may be canceled after February 29. Quoting sources related to the matter, it is being told that the Reserve Bank has given time till February 29 to ensure the safety of the depositors. After that the operating license of Paytm Payments Bank will be cancelled.
Government will conduct investigation by ED
Meanwhile, ED’s sword has also hung over Paytm. In a report by Reuters, Revenue Secretary Sanjay Malhotra is being quoted as saying that Paytm Payments Bank can be investigated by ED. The Secretary says that if a fresh case of money laundering is found, then ED will investigate it. After the action of RBI, this is a new big problem for Paytm.
Share fell by 40 percent in two days
The troubles of the fintech company are not ending here. Paytm is also facing difficulties in the stock market. Due to various types of news, not only shopkeepers but also investors are running away from Paytm. The news of the Reserve Bank’s action came out after the market closed on January 31. After that, as soon as the market opened on February 1 and February 2, Paytm got a lower circuit of 20-20 percent. In just two days, Paytm shares have fallen 40% to a new 52-week low of Rs 487.20. This is 77.34 percent below the upper price band of IPO of Rs 2,150. The mcap of the company has also reduced to Rs 30 thousand crores.
Also read: Companies’ expenses will be reduced in bringing IPO, SEBI panel gave this big suggestion
Get more latest business news updates