(Bloomberg) — Paytm’s stock fell for a third straight day as India’s central bank is considering terminating Paytm Payments Bank Ltd.’s license, adding to growing troubles at the once-famous fintech startup.
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Bloomberg News reported last week that India’s banking regulator is considering removing Paytm Payments Bank’s permit after finding multiple lapses, including several transactions beyond regulatory limits. The regulator has already ordered the bank to halt most of its business, which could hurt the prospects of the widespread digital payments pioneer.
Paytm said the company and its founder Vijay Shekhar Sharma are not under investigation by the country’s anti-money laundering agency, though the statements did little to ease investors’ concerns. Paytm shares fell 10% on Monday, its biggest fall ever, taking its decline in the last three trading days to more than 40%.
“In the past, some merchants/users on our platform have been subject to questioning and on those occasions, we have always cooperated with the authorities,” Paytm’s parent company One97 Communications Ltd said in a disclosure to stock exchanges late on Sunday night. ” The company has also cooperated with state agencies in such investigations.
The unprofitable company’s market value has fallen to about $3.4 billion – down nearly 80% from its stock market debut at the end of 2021. Over the weekend the Mumbai Stock Exchange changed the daily move limit on Paytm shares to 10% after they fell by 20% – the previous limit – on every Thursday and Friday.
India’s regulator stepping up its crackdown on Paytm’s relatively small banking arm is a blow to the wider firm’s reputation and means it needs to quickly find new partners to soften…