Paytm's Vijay Shekhar Sharma Says Users App Will Work Beyond Feb 29 Even As Stock Plunges 20% The fintech giant also said that the RBI notification does not impact user deposits in their savings accounts, wallets, FASTags and NCMC
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Paytm founder Vijay Shekhar Sharma said that the app would continue to work beyond February 29. "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance," he said on X (formerly Twitter).
He also spoke about India's role in payment innovation and financial inclusion. "India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it."
The fintech giant also said that the RBI notification does not impact user deposits in their savings accounts, wallets, FASTags and National Common Mobility Cards accounts, where they can continue to use the existing balances.
However, as expected, shares of One97 Communications, parent company of the fintech giant. It plunged 20% on Thursday, the lowest tradable limit of the day. The stock closed at ₹608.80 on the BSE on Thursday.
Brokerage firm Jefferies downgraded the payment aggregator to 'underperform' from a 'buy' rating. It also slashed the price target (PT) for Paytm's stock by over half, reducing it from INR 1,050 to INR 500, impacting the share price of the company.
The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets or undertake credit transactions, including the Unified Payments Interface (UPI) facility after February 29, 2024.
This means no further deposits, credit transactions, or top-ups will be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024. The nodal accounts of One97 Communications and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024. Notably, on March 11, 2022, the RBI directed Paytm Payments Bank to stop onboarding new customers with immediate effect.
"No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime," Yogesh Dayal, a chief general manager with the central bank, said in a press statement.