Paytm Payment Bank (file photo)
India’s leading payment app Paytm (One 97 Communications Limited) said that the Reserve Bank of India’s action on Paytm Payments Bank Limited (PPBL) will not have any financial or business impact on the company. The company reiterated that it does not have any significant business arrangement or exposure with the banking unit. This Noida-based leading fintech company told the stock market that PPBL works independently and there is no board or management interference from Paytm.
no risk
The company clarified that as already stated as of March 1, 2024, the company has no exposure or significant business arrangement with PPBL. Any service provided by the company is not in partnership with PPBL. Furthermore, PPBL operates independently. Paytm also said that there is no financial impact on the company as it has already written off its investment in PPBL on March 31, 2024.
All services are operational
The company further clarified that none of its services are linked to PPBL and all its offerings including those of its subsidiaries are working normally. Paytm said that Paytm (One 97 Communications Limited) and its services are running without any interruption, and will continue to operate uninterrupted. These include Paytm App, Paytm UPI, Paytm Gold and other services of subsidiaries and affiliates like Paytm QR, Paytm Soundbox, Paytm Card Machine, Paytm Payment Gateway and Paytm Money etc.
decline in shares
However, on Friday there was a decline of more than 1 percent in the company’s shares. According to BSE data, on Friday, the shares of Paytm’s parent company One97 Communication saw a decline of 1.10 percent and the share closed at Rs 1,147.10. However, in the trading session the company’s shares also reached the day’s lower level at Rs 1,142.65. However, the company’s shares had opened flat at Rs 1,159.55. Paytm’s statement after the regulatory action can once again revive the company’s shares on Monday.
