India's Paytm trims losses; analysts see limited hit from bank unit licence scrapping - Reuters

<a href="https://news.google.com/rss/articles/CBMivgFBVV95cUxQWUxDNldLVUNubjRWV3ZRUGhySE03S2JNMWgtdGpfOXJYXzNuRVI5WUlKZ0xhLWlvcllTdVNTNnk2d3ktdGxmU2g1N3c2MG1OWjBXdnhpWVFObUV5dmQ0aU9aSE1kMlZBclBOVU9fTlY0UXQyZFZfdUcwWFh1R2NIbTlfY25lV1dORkN0VnBqa0Y2eWFmalgzS2w2b2tCRFJpUU52aG9iampvUnBDbVR1cHhXZDNTcTROLXgtdXJR?oc=5" target="_blank">India's Paytm trims losses; analysts see limited hit from bank unit licence scrapping</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Shares of India's One 97 Communications, known as Paytm, recouped most losses after the Reserve Bank of India canceled the license of its associate firm, Paytm Payments Bank. Analysts noted that the cancellation would have a limited impact on Paytm's operations.

The Reserve Bank of India canceled the license of Paytm Payments Bank, effectively ending Paytm's original wallet-led model. While the company plans to reapply for a prepaid payment instrument license, the growth potential is limited due to competitive pressures and alternative payment methods.

Paytm's stock fell 6.1% following the Reserve Bank of India's cancellation of its Payments Bank license. Despite the decline, the stock has risen about 22% over the past year, outperforming the Nifty 50 index.

Shares of One97 Communications, Paytm's parent company, fell nearly 8% after the Reserve Bank of India canceled the banking license of Paytm Payments Bank, effectively ending its banking operations.

Paytm Payments Bank has lost its license following years of regulatory limits on its business. The Reserve Bank of India announced the cancellation, effectively rendering it defunct.