Paytm gets a shock from RBI

After the recent RBI mandate to banks and NBFCs against unsecured personal loans, the lenders have pulled back their hands from digital lending. My company has already started facing the impact. Tomorrow onwards we won't be able to disburse any new loans from our platform because the lender is unsure of the road ahead. Personally, I can't afford to go through another layoff this year :')

Given what RBI has gone today is effectively shut down 60-70% of Paytm’s business, to survive, Paytm will end up doing mass layoffs of a scale that we haven’t seen before in India. And potentially with limited severance (not as generous as what swiggy or Big tech has been doing) What would this mean for the rest of job market? So much unemployment in high earning folks, limited new jobs, means very tough competition for each opening and extremely bad situation in terms of appraisals and hikes too.

The Paytm receives yet another blow from the RBI

Just went through RBI's note and developments as per major news houses, so Paytm would no longer be an app which used to be in almost every indian's phone march onwards. such a downfall of a firm who enjoyed their best time post covid. Bhyi anyone knows how can i withdraw/utilise my food wallet from Paytm. Got 1.5k bucks there, don't wanna give a penny to Vijay.. any ideas? On a serious note, i'm gonna miss paytm. it was an great app, atleast their wallet was the best ever, better than upi since the txn can't be unsuccessful. also they brought one of a kind revolution in e payments. RIP Paytm🫡

Can someone explain what just happened to PayTM and if other FinTechs could be subject to something similar?

VC here. Doing this for fun. Don't take all views seriously.

How do MF manage such shocks? Damn, didn't know that so many MF had exposure. I think many of them may not buy more if other payment players start poaching merchants. Intresting to see SBI payments reacting to news. https://www.livemint.com/mutual-fund/paytm-stock-crash-mutual-funds-schemes-likely-to-face-music-with-navs-under-pressure-rbi-bse-paytm-shares-markets-11706776025430.html

RBI is a big bully, everybody knows that. RBI has bullied the likes of HDFC, ICICI and a lot of fintech startups. All it wants is that these folks are compliant with the rules. RBI is one of the most stringent Central banks in the world. This also ensures a lot of financial stability in the country, sometimes overdoing the regulations. Once you fix the systems and comply with RBI, business is back to usual. This has been the trend in all the notices that have been sent across to all the different companies. Paytm should be no different. Paytm has a book value of 205. In case the stock hits a few more lower circuits, in the words of Ashneer Grover, it'll be a "Screaming buy". Every good opportunity comes with a lot of risk. The primary risk here is that Paytm doesn't get its act straight and RBI at the end of February imposes the actions that are mentioned in the circular. Next line in such a case. Well the money is lost but if they fix the necessary things within time then it's going to be a jackpot. Catching falling knives is never easy, and it's bound to hurt you, but hey, "Risk He Toh Ishq He". Next lower circuit is ~487rs The one after it is ~390rs. I think anything under 500 is great price without the RBI impact. If it hits the circuit tomorrow, I'll start buying on Monday. If it doesn't, well, salary is already credited, so it's time for some risky investment.