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Paytm has a way out of the payments bank mess, but it's a treacherous path

Startup News FYIStartup News FYI · 1y ago
Paytm has a way out of the payments bank mess, but it's a treacherous path
Medial

During an investor call, Paytm's leadership failed to address concerns over the recent action taken by the RBI against Paytm Payments Bank (PPBL). Paytm's CEO, Vijay Shekhar Sharma, stated that the payments bank has not shared details with Paytm about the RBI's opinion based on audits conducted over the past two years. Paytm's stock price has fallen by almost 36% in just two sessions, raising concerns about its path to profitability. Paytm is now focused on assuaging investor fears and has outlined steps it plans to take before the RBI-imposed deadline of February 29. However, Paytm is facing several challenges, including negotiations with other banks, migration of loan repayments, and the potential loss of user retention. The company's future remains uncertain.

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‘Should have done better … now learnt the lesson,’ says Paytm founder

Economic TimesEconomic Times · 1y ago
‘Should have done better … now learnt the lesson,’ says Paytm founder
Medial

Paytm Founder and CEO, Vijay Shekhar Sharma, admitted that the company could have fulfilled its responsibilities in a better manner, in response to the Reserve Bank of India's order for Paytm Payments Bank to halt its banking services. Sharma compared the situation to a daughter on her way to an important test, but met with an accident and is now in intensive care. Paytm's parent company, One 97 Communications, reported a threefold increase in net loss and a decline in operating revenue due to regulatory action against the payments bank. Paytm Payments Bank's wallets business came to a halt as a result of the central bank's action. The company's stock has also taken a hit since the order.

Paytm Payments Bank | Latest & Breaking News on Paytm Payments Bank | Photos, Videos, Breaking Stories and Articles on Paytm Payments Bank

Money ControlMoney Control · 1y ago
Paytm Payments Bank | Latest & Breaking News on Paytm Payments Bank | Photos, Videos, Breaking Stories and Articles on Paytm Payments Bank
Medial

Paytm Payments Bank has been in the news lately due to various issues surrounding its license and compliance with regulations. According to the Financial Intelligence Unit, the bank failed to implement a mechanism to detect and report suspicious transactions as required under the PMLA. Speculations over the revoking of Paytm Payments Bank's license have caused its stock to fall. Additionally, the controversy has led to a drop in Paytm's UPI market share. The bank has been fined for violating the PMLA. Despite efforts to cut ties with the bank, Paytm still relies on it in multiple ways. The board of Paytm's parent company has approved the termination of agreements with Paytm Payments Bank. Various financial changes, including restrictions on Paytm Payments Bank accounts, may impact users. Paytm's stock has been in decline and Yes Bank has expressed interest in acquiring the merchant accounts of Paytm Payments Bank. Paytm's efforts to resolve the issues with the regulator are seen as a delay tactic. A Paytm employee committed suicide due to fears of job loss. The board of Paytm Payments Bank has been restructured and the bank has faced various restrictions and an extended deadline for compliance. Despite setbacks, merchant loyalty to Paytm remains intact. Paytm's stock has shown some recovery but Goldman Sachs has reduced its target price. The decline in daily downloads of the Paytm app has been noted, while rival BHIM UPI has seen an increase. Overall, Paytm Payments Bank is facing significant challenges and uncertainties.

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