Divya Delhi: 
Shares of One 97 Communications, the parent of Paytm, pared early losses on Monday after plunging over 8% following regulatory action on Paytm Payments Bank Limited by the Reserve Bank of India. The stock fell as much as 8.38% to ₹1,051.10 in early trade but later recovered, trading about 3% lower at ₹1,113.20 on the NSE. The decline came after the RBI cancelled PPBL’s banking licence on April 24, citing non-compliance and concerns over depositor interests. Paytm, however, clarified that the action has no financial or operational impact on its business. In a regulatory filing, the Noida-based firm said PPBL operates independently, with no involvement of Paytm’s board or management, and that it has no material business arrangements or exposure to the bank. The company also noted it had already impaired its investment in PPBL as of March 31, 2024, eliminating any direct financial hit. It added that all its services, including UPI, wallet, and merchant solutions, continue to function without disruption. Following the RBI directive, PPBL’s board has approved steps for its winding up, subject to regulatory approval, after which it will cease to be an associate of Paytm. Analysts said the development may open new opportunities for Paytm to pursue alternative licences and strengthen its financial services ecosystem despite near-term sentiment pressure.
