Paytm shares fall after hitting upper circuit for four sessions. india business news
shares of One97 Communicationsis the parent company of Paytm Brands, down about 2% on Thursday.
paytm share A significant surge was seen on Wednesday, hitting the upper circuit for the fourth consecutive session. Defying broader market trends, share prices rose 5 per cent to Rs 395.25 and Rs 395.05 on BSE and NSE, respectively.
This comes against the backdrop of a surge fintech giantWith the recovery from the recent recession paytm stock An increase of more than 21 percent from last Thursday’s close.
The bounce-back is in line with reports that the Enforcement Directorate (ED) has not found significant violations of forex rules in its ongoing probe into Paytm Payments Bank Ltd (PPBL), although it noted lapses in the company’s KYC processes and questionable reporting. Have done. Exchange.
Scrutiny on Paytm has intensified as the Reserve Bank of India (RBI) has increased its surveillance on fintech firms, reflecting a global trend towards tighter regulation of the sector. Recent actions by the RBI include directing it to stop certain operations of PPBL due to non-compliance issues, affecting One97 Communications despite holding only a 49 per cent stake in the banking unit.
The RBI’s tough stance follows a period of relatively liberal regulation, but as fintech companies gain economic importance, concerns over customer due diligence, data privacy and systemic risks have prompted a re-evaluation of the oversight mechanism. The central bank’s concerns are primarily over digital customer identification practices, urging companies to classify digitally verified accounts as ‘high risk’ pending more secure verification methods.
In response to these regulatory challenges, the RBI has increased the frequency of inspections and meetings with fintech companies, moving from quarterly to monthly activities. These steps, along with investments in technology and analytical talent, are aimed at strengthening compliance and ensuring the integrity of the financial ecosystem.
The evolving regulatory landscape indicates a potential shift towards higher compliance and capital requirements for FinTech firms, potentially leading to sector consolidation. Nevertheless, industry stakeholders like Ashish Fafadia of Bloom Ventures believe that this investigation will promote compliance and support investment in law-abiding companies.
Amid these developments, the Indian Finance Ministry is planning to hold a meeting with domestic fintech startups next week. The goal is to reinforce the importance of regulatory compliance while addressing industry concerns, especially in the wake of the Paytm Payments Bank crisis and upcoming actions against other fintech operations.
The sector’s ongoing adaptation to these regulatory demands highlights the delicate balance between innovation, customer protection and systemic stability, setting the stage for the next phase of fintech growth in India.
(with inputs from agencies)
paytm share A significant surge was seen on Wednesday, hitting the upper circuit for the fourth consecutive session. Defying broader market trends, share prices rose 5 per cent to Rs 395.25 and Rs 395.05 on BSE and NSE, respectively.
This comes against the backdrop of a surge fintech giantWith the recovery from the recent recession paytm stock An increase of more than 21 percent from last Thursday’s close.
The bounce-back is in line with reports that the Enforcement Directorate (ED) has not found significant violations of forex rules in its ongoing probe into Paytm Payments Bank Ltd (PPBL), although it noted lapses in the company’s KYC processes and questionable reporting. Have done. Exchange.
Scrutiny on Paytm has intensified as the Reserve Bank of India (RBI) has increased its surveillance on fintech firms, reflecting a global trend towards tighter regulation of the sector. Recent actions by the RBI include directing it to stop certain operations of PPBL due to non-compliance issues, affecting One97 Communications despite holding only a 49 per cent stake in the banking unit.
The RBI’s tough stance follows a period of relatively liberal regulation, but as fintech companies gain economic importance, concerns over customer due diligence, data privacy and systemic risks have prompted a re-evaluation of the oversight mechanism. The central bank’s concerns are primarily over digital customer identification practices, urging companies to classify digitally verified accounts as ‘high risk’ pending more secure verification methods.
In response to these regulatory challenges, the RBI has increased the frequency of inspections and meetings with fintech companies, moving from quarterly to monthly activities. These steps, along with investments in technology and analytical talent, are aimed at strengthening compliance and ensuring the integrity of the financial ecosystem.
The evolving regulatory landscape indicates a potential shift towards higher compliance and capital requirements for FinTech firms, potentially leading to sector consolidation. Nevertheless, industry stakeholders like Ashish Fafadia of Bloom Ventures believe that this investigation will promote compliance and support investment in law-abiding companies.
Amid these developments, the Indian Finance Ministry is planning to hold a meeting with domestic fintech startups next week. The goal is to reinforce the importance of regulatory compliance while addressing industry concerns, especially in the wake of the Paytm Payments Bank crisis and upcoming actions against other fintech operations.
The sector’s ongoing adaptation to these regulatory demands highlights the delicate balance between innovation, customer protection and systemic stability, setting the stage for the next phase of fintech growth in India.
(with inputs from agencies)
