November 27, 2023
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February 2, 2024
By: Pooja
The RBI imposes sanctions on Paytm Payments Bank due to persistent non-compliances and supervisory concerns.
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Paytm's stock price drops by 20% in pre-market trading, erasing a significant portion of its market capitalization.
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RBI cites lapses in identifying beneficial owners, monitoring transactions, and reporting cyber incidents as reasons for intervention.
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Regulatory concerns arise over Paytm's dominance in digital payments and its close ties to the e-commerce platform.
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RBI sends a strong message to fintech players, emphasizing the need for strict compliance and adherence to regulations.
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Investor panic triggers short-term selling pressure, indicating expectations of continued market volatility.
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Paytm faces challenges in sustaining its business model without the Payments Bank arm, raising questions about its future and stock recovery.