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Should You Worry If Your Bank Account Is Linked To Paytm? Read Here | Personal Finance News

The Reserve Bank of India today put stricter restrictions on the Paytm Payments Bank (PPB) and ordered that PPB cannot onboard new customers and cannot undertake further deposits or credit transactions after February 29 this year. While the RBI had barred the PPB from onboarding new customers in 2022, the new orders prevented it from other transactions.

RBI said that the Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action. The RBI then directed PPB not to allow further deposits or credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, other than any interest, cashbacks, or refunds which may be credited anytime.

Now, the question is whether you should be worried if your bank account is linked to Paytm. The answer to this is no. The RBI’s fresh decision is not going to inflict any losses on you as the RBI has ordered Paytm to allow customers to withdraw their all deposits from any of the Paytm instruments including wallets and FASTags.

The RBI said that withdrawal or utilization of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to the balance available in their account.

The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, it said.

January 31, 2024
Paytm faces one other reckoning after $10 billion selloff

Paytm, India’s main digital funds model, faces one other reckoning, a yr after it recorded the grisliest preliminary public providing in India’s historical past.

This week, the lock-up interval for the corporate’s inventory will expire, releasing traders to promote shares that haven’t but been allowed onto the market. The largest shareholders in One97 Communications Ltd., Paytm’s mum or dad firm, are Alibaba Group Holding Ltd. and its fintech affiliate Ant Group Co., in addition to Japan’s SoftBank Group Corp.

Paytm and founder Vijay Shekhar Sharma pulled off India’s largest-ever IPO final November solely to see its shares plummet in one of many worst debuts ever. The firm has needed to spend closely to spice up revenues since then, piling up losses simply as traders have grown more and more skittish about money-losing startups.

“The free money days for cash-burning companies are well and truly gone,” stated Deven Choksey, managing director of wealth supervisor KRChoksey Holdings. “Even with Paytm’s lock-in expiry, new investors will only come in after seeing free cash flow in the near horizon. Until then, the stock is going to remain volatile.”

Source: Bloomberg

The firm’s shares fell simply over 1% to 630.8 rupees on Tuesday, far under its IPO worth of two,150 rupees a share. Its market worth is about $5 billion, greater than $10 billion lower than its peak.

Alibaba didn’t instantly reply to requests for remark and a spokesman for SoftBank declined to remark. A consultant for Paytm confirmed the expiration day Nov. 15.

Stocks usually fall after lock-ups expire, as investor promoting places downward strain on shares. It’s not instantly clear what the sale technique of enormous Paytm shareholders will probably be. Ant and Alibaba personal over 30% of shares between them, SoftBank owns almost 17.5%, whereas Berkshire Hathaway Inc.’s holding is about 2.5%.

“We recognize that lock-in expiry (86% of Paytm’s outstanding shares) in Nov ‘22 may represent an overhang on the stock,” analysts Manish Adukia, Rahul Jain and Harshita Wadher of Goldman Sachs Group Inc. wrote in a analysis notice in September.

Nevertheless, the analyst beneficial shopping for Paytm shares given the corporate’s progress in boosting income and transferring towards profitability. “We expect Paytm to deliver c.50% revenue growth for the next few quarters and continue its transition from an erstwhile payments-only business to one with a strong financial services portfolio,” they wrote.

In a letter earlier this week to shareholders, Sharma, 44, sought to quell market nervousness over the shares’ continued capriciousness.

“One year ago, we made our way to the public markets. We are aware of the expectations that Paytm carries, and I assure you that we are on the right path to profitability and free cash flows,” Sharma stated. “Our journey to build a scalable and profitable financial services business has just started.”

Paytm has loads of firm in coping with market turbulence. Food-delivery firm Zomato Ltd. and Nykaa, formally referred to as FSN E-Commerce Ventures, each went public final yr and have seen their shares trounced when freed up for market. Nykaa shares dropped as a lot as 9.4% on Tuesday.

November 15, 2022
Paytm annualised run price of mortgage disbursals touches Rs 34,000 crore in September

Digital monetary providers agency One97 Communications, which operates below the Paytm model identify, on Monday posted round 17 per cent improve in annualised run price of mortgage disbursals to round Rs 34,000 crore in September.

The firm had posted an annualised run price of mortgage disbursals of about Rs 29,000 crore in August.

“Our loan distribution business (in partnership with top lenders) continues to witness accelerated growth with disbursements through our platform now at an annualised run rate of Rs 34,000 crore in the month of September,” the corporate mentioned in a regulatory submitting.

During the reported month, complete variety of loans disbursed by Paytm grew by over three fold to about 92 lakh within the quarter ended September 2022, from 28.41 lakh a yr in the past.

The worth of loans disbursed by way of Paytm grew shut to 6 instances to Rs 7,313 crore, from Rs 1,257 crore within the September 2021 quarter.

The firm’s common month-to-month transaction consumer (MTU) for the quarter ended September 2022, elevated 39 per cent to 7.97 crore on a year-on-year foundation.

During the September 2022 quarter, the full service provider gross merchandise worth (GMV), which is the full funds quantity processed by the retailers, grew by 63 per cent to an aggregated worth of Rs 3.18 lakh crore on a year-on-year foundation, in keeping with the submitting.

October 10, 2022
Paytm to file for brand new license, says bullish about its roadmap for common insurance coverage

Digital funds and monetary companies firm Paytm has stated that it’ll search a brand new common insurance coverage license with a contemporary software, aimed toward gaining majority shareholding with a 74 per cent upfront fairness stake.

In a regulatory submitting, Paytm reiterated its intention to make inroads within the common insurance coverage sector, as this can be very bullish about its potential.

Paytm stated it stays bullish on its roadmap for common insurance coverage, “and we intend to seek requisite approvals for a new general insurance license, wherein we hold a 74 per cent majority shareholding upfront.” Paytm is synonymous with digital funds in India – having pioneered QR code and pockets traits within the nation. It has additionally efficiently forayed into monetary companies as its partner-based lending enterprise has recorded fast progress.

This, together with the rising technology-led insurance coverage penetration in India, now offers the corporate confidence to file for a brand new software, the place One 97 Communications Ltd – the father or mother agency of Paytm – could have a direct majority shareholding as a substitute of the sooner proposed fully-diluted shareholding of 11 per cent.

The determination to hunt approval for a brand new license comes after Paytm and Raheja QBE mutually agreed to discontinue the proposed acquisition of RQBE.

The firm within the trade submitting stated, “Our associate company, Paytm Insuretech Private Limited, had entered into a share purchase agreement to acquire 100 per cent of Raheja QBE General Insurance Company Limited. As the share sale and purchase transaction has not been consummated within the time period envisaged by the parties under the said agreement, the agreement has automatically terminated.” In a separate submitting on Sunday, Paytm shared its enterprise working replace for the month of April. Paytm’s lending enterprise now has an annualized run charge of Rs 20,000 crore.

In April alone, the corporate has disbursed 2.6 million loans by way of its platform value Rs 1,657 crore (USD 221 million). The firm additionally recorded over 100 per cent year-on-year progress in complete service provider funds quantity or GMV, aggregating to Rs 0.95 lakh crore (USD 12.7 billion).

Paytm’s month-to-month transacting customers stood at 73.5 million. In the offline funds phase, the corporate’s complete machine deployment throughout India has crossed 3 million.

May 16, 2022
Paytm share worth recovers, climbs 6.5% after hitting recent all-time low

Paytm share worth: Shares of One 97 Communications, the father or mother firm of funds platform Paytm, climbed over 6.5 per cent within the late morning commerce on Wednesday after registering a steep fall within the earlier two periods.

The inventory climbed 6.53 per cent to Rs 631.15 apiece on the National Stock Exchange (NSE) whereas on the BSE, it rose 6.51 per cent to Rs 630.95. It had briefly touched a recent all-time low of Rs 572.25 on BSE and Rs 572.00 on NSE earlier within the session.

At 11:48 am, the Paytm scrip was buying and selling at Rs 624.70, up Rs 32.30 (5.45 per cent), whereas on NSE, it was at Rs 623.90 per share, up Rs 31.45 (5.31 per cent), information from the respective inventory exchanges confirmed. The market capitalisation stood at Rs 40,513.31 crore, as per the knowledge out there on the BSE.

In the previous two periods, Paytm shares had tumbled over 23.5 per cent after the RBI on Friday requested Paytm Payments Bank to cease opening new accounts amid “material supervisory concerns” noticed within the financial institution.

The inventory declined 23.54 per cent on the BSE to finish at Rs 592.40 on Tuesday and on NSE it fell 23.56 per cent to Rs 592.45. In two days, the corporate’s market valuation plunged by Rs 11,809.43 crore to Rs 38,418.57 crore on the BSE.

“This action is based on certain material supervisory concerns observed in the bank,” the Reserve Bank of India (RBI) mentioned final Friday.

Meanwhile, PPBL mentioned it’s taking quick steps over the RBI transfer. “PPBL remains committed to working with the regulator to address their concerns as quickly as possible. PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption,” it mentioned, including, “The savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional.”

This aside, on Tuesday, Munish Varma, managing accomplice at DelicateBank, resigned from the board of One97 Communications. Varma was a non-executive and non-independent director on the board of the corporate. The resignation is in step with DelicateBank’s acknowledged observe of stepping down from the boards of investee corporations put up a list.

Following the resignation of Varma, Vikas Agnihotri, his alternate director, additionally stepped down, Paytm mentioned in an change submitting.

DelicateBank presently holds a 17.4 per cent stake in Paytm, current shareholding information from BSE exhibits.

March 16, 2022
Munish Varma resigns from Paytm board

Munish Varma, managing associate at GentleBank, on Tuesday resigned from the board of One97 Communications, the father or mother agency of Paytm. Varma was a non-executive and non-independent director on the board of the corporate which owns the Paytm app. The resignation is in step with GentleBank’s said follow of stepping down from the boards of investee corporations submit an inventory.

Following the resignation of Varma, Vikas Agnihotri, his alternate director, additionally stepped down, Paytm stated in an alternate submitting.
GentleBank at present holds a 17.4 per cent stake in Paytm, current shareholding information from BSE reveals.

Last week, Reserve Bank of India disallowed Paytm Payments Bank from onboarding new clients.

The central financial institution’s order has damage the corporate’s share value, which crashed to a document low of Rs 585 on Tuesday.

On the NSE, it plunged 12.71 per cent to settle at Rs 589.

March 15, 2022
Paytm share worth: One 97 Communications inventory crashes over 13% as RBI directs funds financial institution arm to cease onboarding new prospects

Paytm share worth: Shares of One 97 Communications, the proprietor of funds platform Paytm, fell over 13 per cent to hit their lowest ranges within the morning commerce on Monday after the Reserve Bank of India (RBI) on Friday directed Paytm Payments Bank to cease onboarding new prospects with speedy impact and conduct a complete audit of its IT system, citing “material supervisory concerns”.

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The inventory fell 13.30 per cent to its all-time low of Rs 672.00 per share on the National Stock Exchange (NSE) whereas on the BSE, it declined 13.25 per cent to the touch a low of Rs 672.10 apiece.

At 11:24 am, the scrip of One 97 Communications was buying and selling at Rs 701.00, down Rs 73.80 (9.53 per cent) whereas on NSE, it was at Rs 699.35, down Rs 75.70 (9.77 per cent). The market capitalisation of the corporate stood at Rs 45,461.55 crore, information from the BSE confirmed.

So far within the intraday commerce, over 64.43 lakh shares of Paytm have been traded on the NSE whereas over 3.23 lakh shares have exchanged fingers on the BSE, information from the respective inventory exchanges confirmed.

In an announcement launched on Friday after market hours, the central financial institution mentioned, “Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.”

This motion is predicated on sure materials supervisory issues noticed within the financial institution, it added.

For the 12 months ended March 31, 2021, Paytm Payments Bank, which has the most important scale amongst all cost banks, had recorded a internet revenue of Rs 17.88 crore on gross sales of Rs 1,987.84 crore, in accordance with Paytm’s IPO prospectus. One97 Communications owns 49 per cent fairness curiosity in Paytm Payments Bank, whereas the remainder 51 per cent is owned by Vijay Shekhar Sharma.

Reacting to the autumn, Ravi Singh, Head of Research and Vice President at Share India Securities mentioned, “Paytm’s recent ban on adding new customers due to likely gaps in its technology systems is definitely going to hurt the business sentiments. The immediate impact will be negative. However, Paytm has already onboarded a very large customer base onto the payments bank, but the ban may affect their chances of upgrading to a small finance bank. The stock may see more selling pressure and may touch the level of Rs 500 in the medium term.”

He additional famous that “The overall market is in correction mode. New-age internet stocks like Zomato, Nykaa, or Paytm are also facing massive selling pressure. This may continue for some more trading sessions. However, a buying opportunity may arise if these stocks fall another 3–5 per cent. Investors may take a fresh entry, keeping a view of the long term.”

March 14, 2022
Paytm shares tumble over 7% submit Q3 earnings

Shares of One97 Communications, which operates underneath the Paytm model, tumbled over 7 per cent after the corporate reported widening of consolidated loss to Rs 778.5 crore within the December 2021 quarter.
It declined 5.69 per cent to Rs 898.95 on the BSE.
On the NSE, the inventory tumbled 7.55 per cent to Rs 881.30.
The digital funds and monetary providers firm had registered a lack of Rs 535.5 crore in the identical interval a 12 months in the past, based on monetary outcomes of the corporate filed with the BSE on Friday.
The consolidated income from operations of Paytm, nevertheless, elevated by about 88 per cent to Rs 1,456.1 crore in the course of the reported quarter from Rs 772 crore it posted within the December 2020 quarter.

February 7, 2022
Anchor investor exits, Paytm shares spiral to hit all-time low

Shares of One 97 Communications, which owns the Paytm model, fell sharply by over 6 per cent on Monday to hit its all-time low of Rs 1,151 earlier than closing at Rs 1,157.9. The shares of the got here below strain following information that HDFC Mutual fund, one of many 4 mutual funds that had been anchor buyers in its IPO, considerably lowered its holding of Paytm throughout two schemes within the month ended December 2021.
The fall
Paytm fell 6 per cent Monday and so they have misplaced 13 per cent since December 31, 2021. While MFs held 0.81 per cent within the firm as of November 17, 2021, disclosure of discount in holding by HDFC Mutual fund within the firm, weakened sentiment. “When the fund manager believes the stock may continue to trade low over the near to mid-term, they book losses and exit,” mentioned a fund supervisor. A HDFC MF spokesperson declined to remark as fund homes don’t touch upon stock-specific funding selections. Macquarie lower its worth goal by 25 per cent to Rs 900 from round Rs 1,200, retaining its ‘underperform’ ranking.
Paytm responds
The variety of loans disbursed by means of the Paytm platform rose 401 per cent year-on-year to 4.4 million loans within the third quarter of FY 2022. “… In Q3FY22, value of loans disbursed via our platform during the quarter was Rs 2,180 crore (run-rate of $1.2 billion), an increase of 365 per cent. We have seen stellar growth in … lending products…,” Paytm mentioned.

January 10, 2022
Paytm GMV greater than doubles to Rs 1.66 lakh crore in Oct-Nov 2021 interval

Digital funds and monetary companies agency Paytm on Monday reported over two-fold rise in its gross merchandise worth to about Rs 1,66,600 crore within the first two months of the third quarter of this fiscal, pushed by sharp uptick in mortgage disbursals.
One97 Communications Ltd, the mother or father firm which owns and operates model Paytm, had recorded GMV (gross merchandise worth) of Rs 72,800 crore within the corresponding interval a 12 months in the past.
Paytm refers to GMV as the worth of whole funds made to retailers by transactions on its app, by Paytm cost devices or by its cost options, over a interval. It excludes any consumer-to-consumer cost companies comparable to cash transfers.
“Growth momentum in GMV continues in the first two months of the quarter, due to strong performance during the festive season, which continues post festive season,” the corporate stated in a regulatory submitting.

The variety of loans disbursed from the Paytm platform elevated over 4 occasions to 27 lakh in the course of the reported interval, from 5.30 lakh a 12 months in the past.
The worth of mortgage disbursed elevated by 375 per cent on a year-on-year (y-o-y) foundation to Rs 13,200 crore (USD 178 million) within the first two months of the quarter from Rs 280 crore.
“We have seen across each of the lending products, i.e. Paytm Postpaid, Personal Loans and Merchant Loans. On November 26, 2021, we launched a new credit card in partnership with HDFC Bank, further to the announcement of our partnership in September 2021,” the corporate stated.
Paytm posted progress of 36 per cent in month-to-month transacting customers (MTUs) at 6.32 crore in the course of the reported interval, from over 4.66 crore common MTUs within the first two months of the identical quarter a 12 months in the past.

December 13, 2021