<p>Following a significant decline over the previous month, Paytm’s shares have surged about 21% over the last four trading days. Paytm is a digital payments company.</p>
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<p>Following the Reserve Bank of India’s (RBI) regulatory action against its affiliate, Paytm Payments Bank, Paytm shares have dropped by about 50% in only one month.</p>
<p>Following the RBI’s directive, the fintech company—often considered to as the forerunner of digital payments in India—saw a crisis as a result of widespread anxiety among its merchant network and user base.</p>
<p>A number of analysts who were following the stock downgraded it and voiced grave concerns about Paytm’s capacity to go on business as usual and generate consistent profits.</p>
<p><strong>What caused Paytm’s comeback?</strong><br />
Even though these issues haven’t been entirely addressed, Paytm has been successful in reassuring investors that the app’s essential features would not be impacted.</p>
<p>Further clarification was also given by the RBI, which made it apparent that their regulatory action was limited to the payments bank in its most recent FAQ on Paytm Payments Bank.</p>
<p>The fact that the Enforcement Directorate has not yet discovered any foreign currency crimes against Paytm, however, is the primary cause of the company’s stock’s recent surge. According to the RBI, the inquiry agency’s examination has only discovered gaps in KYC so far.</p>
<p>Although the RBI’s decision has left the future of Paytm Payments Bank unclear, the stock has benefited from the clarity around Paytm’s core activities, and analysts predict that the company may enjoy more rises in the near future, at least until March 15.</p>
<p>It should be mentioned that the new deadline for Paytm Payments Bank to cease essential activities is March 15. In order to maintain operating continuity, Paytm will then need to transfer essential functions, such as wallets, to other banks.</p>
