Paytm shares rally 10% as co sticks to ‘no probe’ claim – Times of India

Mumbai: Shares of One97 Communications, Paytm’s parent, rallied for the second day on Wednesday, with shares hitting the 10% upper circuit. The shares gained in hopes that services as a third-party UPI app would continue even if the restrictions on Paytm Payments Bank (PPBL) were to be sustained.
The company’s shares closed 10% higher at Rs 497 and rose 3% on Tuesday. On Monday, the payment company’s shares had touched a new low of Rs 396.
Meanwhile, in an interview with PTI in New Delhi, financial services secretary Vivek Joshi said it is for RBI to deal with the Paytm issue, and govt has nothing to do with the matter for now.
“It is an action taken by the regulator. They regulate the banks. Govt has had nothing to do until now regarding the actions taken against Paytm. And we believe that RBI must have taken the action in the overall interest of the consumer and the economy,” Joshi told PTI in an interview.

The company saw the financial services secretary’s statement as a vindication of its claim that there was no govt investigation.
“We, at Paytm, have always maintained that there is no investigation pending or ongoing by any agency on the company or any of its associates. The recent statement by senior govt officials has only confirmed that position,” a Paytm spokesperson said. “We will continue to work under regulators’ guidance and strengthen our processes. We are committed to expanding the digital payments reach across the nation,” the statement added.
Regarding FDI in Paytm’s payment aggregator subsidiary, Joshi said permission has been sought for investment from China. “The application is under review as it is an inter-ministerial process,” he said.
In the interview, Joshi also said that PPBL is a very small bank, and there were no systemic stability concerns as such. “The customers who have an account in the payments bank will have to shift their account… From what I understand, the bank will not migrate the accounts. The customers have to do it,” he added.



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