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Paytm Shares Slump as RBI Bars Payments Bank From Taking on New Customers

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RBI Bars Paytm Payments Bank From Taking on New Customers After Data Violation - Report

On Monday, the Reserve Bank of India barred Paytm Payments Bank from onboarding new customers due to a data violation. The bank had allowed customer data to flow to servers abroad in contravention of RBI rules, and also failed to properly verify its customers. This is a huge setback for Paytm Payments Bank, which has been struggling to gain market share against more established players like HDFC Bank and State Bank of India.

The Reserve Bank of India has found that Paytm Payment Bank’s servers are sharing user information with China-based entities which indirectly own a stake in this bank.

Also Read: US President Joe Biden to Issue an Executive Order on Cryptocurrency This Week

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“Paytm Payments Bank is proud to be a completely homegrown bank and complies with all rules on data localization. All of the company’s information resides inside India, where it’s safe.” A Paytm Payments Bank spokesperson said on the recent Bloomberg report alleging Paytm Payments Bank for leaking data.

Paytm Payments Bank is a joint venture by Paytm and its founder Vijay Shekhar Sharma. The bank has shared from China’s Alibaba Group Holding and its affiliate, Jack Ma’s Ant Group.

On Friday, the RBI barred Paytm Payments Bank from adding more customers. They’ve cited “material supervisory concerns”. The bank was directed to appoint an IT audit firm for a system audit of its IT system.

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Paytm is a popular mobile payments platform in India with over 300 million wallets and 60 million bank accounts, according to their website.

Also Read: Himalayan Yogi Scandal: Former NSE MD Chitra Ramkrishna Arrested: All You Need To Know

Meanwhile, On Monday, the share price of Paytm’s parent company One 97 Communications fell by 12% to Rs 685 per share. This is nearly 70% lower than the company’s initial public offering (IPO) price of Rs 2,150 per share.

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NIFTY scales new heights, expect Sensex to follow this time around

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NIFTY scales new heights, expect Sensex to follow this time around

Last week, the markets remained volatile but continued their upward trend, with NIFTY hitting a new high each trading session. BSESENSEX is close to surpassing its previous high, while NIFTY is expected to set a new high on Monday or Tuesday.

BSESENSEX closed the week gaining 716.16 points, and NIFTY gained 172 points. The broader markets also saw gains across different indices. While markets saw gains on three sessions, they faced losses on two days. The Indian Rupee also saw a slight gain against the US Dollar.

Vibhor Steel Tubes Limited had a remarkable debut on the bourses, listing at a gain of 178.80 percent and closing at a gain of 192.71 percent. Juniper Hotels Limited’s IPO received a lukewarm response despite being subscribed 2.07 times overall. Exicom Tele-Systems Limited is set to launch its IPO, offering power management solutions and EV chargers.

Bharat Highways Invit is set to launch an issue for fixed income investors, with units to be issued in a band of Rs 98-100. The INVIT will have initial assets from G.R. Infraprojects Limited’s HAM model, offering an attractive income yield. February futures are set to expire on February 29 amid a bullish market trend.

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TN CM lays foundation stone for VinFast's Rs 4,000-cr EV factory

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TN CM lays foundation stone for VinFast's Rs 4,000-cr EV factory

Tamil Nadu Chief Minister M.K. Stalin laid the foundation stone for VinFast group’s EV plant in Tuticorin. VinFast Auto India Ltd will invest Rs 4,000 crore in the first phase out of the planned Rs 16,000 crore investment, making Tamil Nadu the country’s EV Capital.

The plant, spread across 380 acres, will have a capacity to roll out 1,50,000 vehicles per annum. Industries Minister T.R.B. Rajaa mentioned that Tamil Nadu is already a hub for electric vehicle production in India.

Stalin distributed compensation for flood victims and criticized the central government for not providing support. Despite roadblocks, the state government has been successful in achieving its objectives and attracting investments for the state.

Since taking office in 2021, Stalin has prioritized garnering investments for Tamil Nadu. The DMK-led government’s focus on the welfare of the people has been evident in its policies and programs.

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Aadhaar, Jan Dhan giving big push to digital India ecosystem: Instamojo's CEO

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Aadhaar, Jan Dhan giving big push to digital India ecosystem:
Instamojo's CEO

New Delhi, Feb 25 (IANS) As the government accelerates its digital journey, Instamojo’s CEO Sampad Swain highlighted the impact of Aadhaar and Jan Dhan Yojana on India’s digital ecosystem. Swain emphasized on the opportunities created in the last few years, including the JAM Trinity, availability of credit, and the role of social media for small business owners.

Instamojo, a D2C tech company, provides online stores and payment solutions for e-commerce brands and startups. Despite facing a setback last year when RBI returned their license application, Swain remains optimistic and stated that they are preparing to reapply by September, with a focus on data security and compliance with regulations.

In FY2023, Instamojo reported significant profits and steady growth in its customer base, currently serving over 3 million small business owners on its platform. Swain expressed confidence in the company’s continued success, projecting a profitable year in 2024.

The CEO highlighted the importance of adapting to regulatory requirements and maintaining a strong customer base in the competitive digital market. Instamojo’s focus on empowering small businesses with online tools and payment solutions has contributed to its growth and success in the evolving digital landscape.

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