Story about paytm

presented by: department of business (MBA)

Mandeep kaur
Hashmeet kaur
Simranjit kaur
Prachi kumari
Karamveer singh

This Photo by Unknown Author is licensed under CC BY-SA-NC

 content
Topic Page no .
1.Introduction 3

2. Company highlight 4

3. About paytm founder 5-6

4. Paytm timeline 7

5. What happened with paytm 8-12

6. Sharp down in stock price 13-14

7. Conclusion 15

2 Presentation title
 INTRODUCTION
• Paytm “stands for “pay through mobile “
• It’s a simple and convenient way to make payment using mobile phone. With paytm
you can transfer money, pay bills, shop online ,and do much more all through your
smartphone.
• So, paytm essentially allow you to handle your payments and financial transactions
easily, anytime, anywhere ,just by using mobile device.
• Its headquarter in Noida and in 2014 it entered e-commerce market, providing
products and facilitates similar to filpkart and amazon.
• In 2015 it entered into bus booking. Recently Alibaba has brought 25% stake in One
97 communication

3 Presentation title
PAYTM - COMPANY
HIGHLIGHT

STARTUP NAME-PAYTM
Headquarters-Noida, Uttar Pradesh, India
Sector-FinTech
Founder-Vijay Shekhar Sharma
Founded-2010
Website-paytm.com

4
 About paytm founder

5
 about paytm founder (countd.)

6 Presentation title
 Paytm timeline

7 Presentation title
 What happened with paytm
• Fintech major Paytm issues clarification for users for its ongoing services
today, after the Reserve Bank of India (RBI) on Wednesday issued
restrictions on Paytm Payments Bank.The RBI ordered Paytm Payments
Bank to not onboard new customers and also not to undertake further
deposits or credit transactions after February 29 this year.
• According to RBI order, no further deposits or credit transactions or top
ups will be allowed in any customer accounts, prepaid instruments,
wallets, Fastags, National Common Mobility Cards (NCMC), etc. After
February 29, 2024, other than any interest, cashbacks, or refunds which
may be credited anytime.

8 Presentation title
 contd
• The Reserve Bank of India (RBI) launched a major clampdown on Paytm
Payments Bank on January 31 after observing a complete disregard by the
company for regulatory standards and compliance requirements, Thus
raising serious concerns about the promoters' as well as the group's
commitment to transparency, according to a person familiar with the
development.The person spoke on condition of anonymity.
• "The present action by the RBI is to protect the financial system and
prevent a payment bank which is a RBI regulated entity dealing in public
money, being run in a manner detrimental to the interest of its depositors,
customers, and other genuine stakeholders," the person said.

9 Presentation title
 Reasons
• There were four primary issues at paytm payments banks that triggered the RBI
action, the person cited above said ,
1. The bank falsified compliance on issues pointed out by the regulator, meaning it
claim to have a rectified the flaws without actually doing so,
“ When RBI found KYC violations in 2021, the bank did not make the necessary
changes and also presented inaccurate compliance reports which subsequently led to
restriction on adding new customer in march 2022. There was absence of KYC for a
very large number of customers

10 Presentation title
 contd
2. There was instances of a single PAN (permanent account number) an identity
document issued by the income tax department- being linked to hundreds of customers.
• During its probe, the RBI found that in thousands of cases, the same PAN was linked
to more than 100 customers and in some cases to more than 1000 customers the total
value of transactions running into crores of rupees, much beyond regulatory limits in
minimum KYC pre- paid instruments raising money laundering concerns.

11 Presentation title
 contd
3. The non financial and financial businesses of the payments bank were
closely intertwined with that of the promoter group of companies. This the
person cited above said, was against the conditions prescribed by RBI in its
licence to paytm payments bank. Introduced during the tenure of former
RBI governor Raghuram Rajan, payments banks aim to reach the under
banked and unbanked population. However they cannot lend.

12 Presentation title
 CONTD..
4. Paytm payments bank also allowed some customers to keep more than 1
lakh in their accounts, the maximum permitted by the regulator at that time
the person added.
The bank, which started operation in 2017 broke this rule within a year they
said . The ceiling was raised to 2 lakh in 2021.

13 Presentation title 20XX

 Sharp drop in stock price
• Paytm shares plunged on stock markets hitting lower circuits for two
consecutive days.
• 0n February 2, the shares ended at RS 487.20 a piece down 20% from the
previous close.
• on Friday the market capitalization of One 97 communication stood at
30,941 crore down from 1.4 lakh crore at the time of IPO.

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15 Presentation title
 conclusion
• The Reserve bank of India is considering cancelling the
operating license of paytm payments bank as early as next
month once depositors are safeguarded, according to people
with knowledge of the matter.
• No final decision has been reached as yet and the RBI thinking
may change based on paytm representation.

16 Presentation title
Thank you