One97 Communications Ltd. (Paytm) shares plunged 5%, marking the third lower day in a row for the stock. The stock continued to lose ground for the fourth session in a row. Even as a media report indicated that The National Payments Corporation of India was attempting to approve Paytm's application to become a third-party payment app, the stock was declining.
Customers will be able to use the Paytm app for payments through the unified payment interface (UPI) as long as third-party application providers have a license to do so. This is because Paytm Payments Bank, the company's banking arm, would suspend operations on March 15 due to regulatory action taken by the RBI due to non-compliance issues.
According to an ET story citing anonymous senior bankers, Paytm's consumer-facing UPI payments would be supported by Axis Bank, YES Bank, HDFC Bank, and State Bank of India (SBI).
The Paytm stock dropped 4.98 percent on the BSE, reaching a low of Rs 334.35 before making up part of the ground loss. Later, the shares were down 4.01%, trading at Rs 337.80.
Over the course of the four-day selloff, the scrip has dropped 17%. In actuality, Paytm's stock has dropped 66.50% from its 52-week high of Rs 998.30, which it reached in October of last year.
A Paytm Spokesperson stated, “One 97 Communications and its services, which include the Paytm app, and merchant devices like Paytm QR, Soundbox and Card Machines continue to work uninterrupted. We are expanding our financial services distribution platform in partnership with leading institutions. Paytm is committed to creating an inclusive next-generation financial ecosystem for our users across the country.”
