Paytm shares rally 10% as co sticks to ‘no probe’ claim

Feb 7, 2024

Mumbai: Shares of Paytm's parent company One97 Communications rose for the second day on Wednesday and the shares hit the upper circuit of 10%. Shares surge on hopes as services Third-party UPI apps Even if the ban continues Paytm Payments Bank (PPBL) was to be maintained.
The company's shares closed 10% higher at Rs 497 and gained 3% on Tuesday. On Monday, shares of the payment company had reached a new low of Rs 396.
Meanwhile, in an interview with PTI in New Delhi, Financial Services Secretary Vivek Joshi said that it is the job of RBI to deal with this Paytm issue, and the government has nothing to do with this matter at present.
“This is an action taken by the regulator. They regulate the banks. The government has yet to do anything with regard to the action taken against Paytm. And we believe that the RBI has done good to the overall health of the consumer and the economy. Would have taken action in the best interest,” Joshi told PTI in an interview.
The company saw the Financial Services Secretary's statement as confirmation of its claim that there was no government investigation.
A Paytm spokesperson said, “At Paytm, we have always maintained that there is no pending or ongoing investigation by any agency into the company or any of its associates. The recent statement from senior government officials has only confirmed that position.” “We will continue to work under the guidance of regulators and strengthen our processes. We are committed to expanding the reach of digital payments across the country,” the statement said.
Regarding FDI in Paytm's payment aggregator subsidiary, Joshi said that permission has been sought from China for investment. “The application is under review as it is an inter-ministerial process,” he said.
In the interview, Joshi also said that PPBL was a very small bank, and it had no systemic stability concerns. “Customers who have accounts with the payments bank will have to transfer their accounts… As far as I understand, the bank will not transfer accounts. Customers will have to do that,” he said.

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