As of today, February 2nd, 2024, here are some of the latest developments surrounding Paytm:
RBI restrictions on Paytm Payments Bank:
The Reserve Bank of India (RBI) has placed restrictions on Paytm Payments Bank (PPBL), effective February 29th, 2024. These restrictions include:
No onboarding of new users: After February 29th, no new users can register for PPBL accounts.
Limited services for existing users: Existing users won't be able to use their Paytm wallets, Fastags, or Mobility Cards issued by PPBL.
Financial impact: Paytm estimates a Rs 300-500 crore hit on its annual operational profit due to these restrictions.
Impact on Paytm
Stock price plunge: Paytm's stock price has fallen sharply due to the RBI restrictions, dropping 20% today and hitting a 52-week low.
Impact on partnerships: Paytm is accelerating partnerships with other banks to minimize the impact of PPBL restrictions.
Shift towards high-value loans: Paytm is cutting down on small-ticket loans and focusing on disbursing larger loans to offset the financial impact.
Overall
The latest developments involving Paytm are mainly centred around the RBI restrictions on PPBL. These restrictions have significantly impacted Paytm's operations and finances, leading to a drop in stock price and other challenges. Paytm is taking steps to adapt to the situation, including partnering with other banks and shifting its loan strategy.