Paytm Founder Vijay Shekhar Sharma Meets Sitharaman: Reports

Reports suggest that One97 Communications, the parent company of the payment services firm, faced a significant decline in its stock value following major business restrictions imposed by the Reserve Bank of India (RBI) against Paytm Payments Bank Ltd (PPBL).

Earlier on the same day, Reuters revealed that Sharma and Paytm officials had met with the RBI on February 5 to discuss regulatory concerns.

These meetings come after the RBI instructed Paytm Payments Bank on January 31 to halt new deposits in its accounts and digital wallets from March due to supervisory concerns and non-compliance with rules.

As per Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. Sources mention ongoing discussions to address regulatory concerns and compliance issues with both the RBI and the ministry.

Paytm has requested an extension of the February 29 deadline from the RBI and seeks clarity on the transfer of its license for the wallets business and Fastag digital highway toll payment service, according to sources.

“The RBI listened to Paytm without making any commitments,” said another source.

Responses from Paytm, RBI, and the finance ministry to Reuters’ request for comment are still pending.

As of February 5, Paytm’s shares had dropped by about 42%, causing a $2.5 billion reduction in its market value. Concerns arose about the broader business impact, as Paytm Payments Bank plays a crucial role in the digital payments app, competing with platforms like Walmart’s PhonePe and Google.

As Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. On February 6, the stock hit a record low following a Reuters report on the Enforcement Directorate investigating potential violations of foreign exchange rules by the company.

A Paytm spokesperson refuted the allegations, denying any foreign exchange law violations.

There are speculations that the RBI’s regulatory actions might lead to the cancellation of Paytm’s license, according to a source familiar with the matter from last week.

On Tuesday, Paytm’s shares partially recovered, closing 2.9% higher at 451.15 rupees, after an earlier 8% increase.

Avinash Gorakshakar, head of research at Profitmart Securities, suggested that this share move could be a “dead-cat bounce” amid ongoing negative news affecting the stock.

Bernstein lowered its target share price but maintained an outperform rating, anticipating Paytm’s ability to successfully navigate operational changes required to overcome the imposed restrictions.

Also Read: Paytm Founder Vijay Shekhar Sharma Meets Sitharaman

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During the inauguration of India Energy Week (IEW) 2024, Modi expressed that a substantial portion of the Rs 11 lakh crore, as announced in the Interim Budget 2024 for infrastructure, will be directed towards the energy sector.

India is Unprecedented Investment Surge in Energy Sector: PM Modi

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, speaking at IEW 2024, acknowledged the challenges the energy sector faces in terms of availability, affordability, and sustainability. Puri noted that in the current global scenario, energy availability is a significant concern.

Puri highlighted the prominence of IEW, stating, ‘In just a year, the India Energy Week has become a prominent fixture on the global energy calendar.’

Also Read: India is Unprecedented Investment Surge in Energy Sector

He also recognized the success of India’s global initiatives, such as the International Solar Alliance and the Global Biofuels Alliance.

Puri commended Prime Minister Modi’s leadership for maintaining low petrol and diesel prices in India, stating, ‘Under your leadership, we ensured that prices of petrol and diesel in India were amongst the lowest globally.’

Speaking at the event’s inauguration, Goa Chief Minister Pramod Sawant stated that IEW 2024 provides a unique opportunity for Goa to showcase its potential in the energy sector.

Sawant pledged to create a skilled workforce to support various initiatives in skilling, reskilling, and upskilling, catering to emerging sectors in the state.”

Also Read: India is Unprecedented Investment Surge in Energy Sector

Get the Business News along with India’s Latest Updates at TheNewsay and Follow for Live Updates – Facebook, Instagram, Threads, Twitter, Pinterest, KooApp and YouTube.