Paytm in trouble after RBI passed the directive causing Paytm's share price to drop by 20% in early trade, and prompted many to share their reactions on X.
The Reserve Bank of India, on January 31, prohibited Paytm Payments Bank from accepting deposits or top-ups in any wallets, prepaid instruments, or FASTags after February 29, 2024. The central bank took this decision after carrying out a comprehensive system audit report and subsequent compliance validation report by external auditors.
After the news was announced, Paytm's share price dropped by 20% in early trade, and prompted many to share their reactions on X. Many took the route of hilarity by posting memes on the price drop.
More about RBI's order on Paytm Payments Bank:
Paytm stated on February 1 that it believes the RBI's directive could have a negative effect on its yearly earnings of between ?300 and 500 crore. One 97 is one of India's largest payment firms, with early investments from SoftBank and Ant Financial. According to company's annual report for 2022-23, it has a 49% stake in the company, with CEO Vijay Shekhar Sharma holding the remaining 51%.
Paytm made it clear that Vijay Shekhar Sharma, the company's founder, has never taken out margin loans or pledged any of his directly or indirectly owned shares. Paytm clarified that Paytm Payments Bank Limited is run independently by its board and management.
