Paytm, MobiKwik Share Price Slides as RBI Flags Fresh Customer Protection Rules | Stock Market Today

Market Performance

UPI-linked stocks were under pressure in the stock market today. Paytm and MobiKwik share price slipped by as much as 3.5% on February 6, as investors reacted to a fresh announcement from the Reserve Bank of India (RBI).

The selling wasn’t driven by company-specific updates. Instead, it followed comments from the RBI Governor that signaled tighter rules around digital payments and customer protection—an area directly linked to UPI-led platforms.

In a market where sentiment moves faster than numbers, even regulatory intent can sway stocks in the short term.

Main News: Why Paytm and MobiKwik Shares Were in Focus?

During the monetary policy announcement, RBI Governor Sanjay Malhotra said the central bank plans to introduce a new framework to compensate customers for small-value digital frauds.

The proposal includes compensation of up to:

• ₹25,000 per customer
• One-time compensation
• Limited to unintended digital fraud losses
• Compensation could be up to 85% of the fraud amount, within the limit

The RBI clarified that the draft guidelines will be issued shortly.

This announcement came as part of a broader push to improve digital payments safety, at a time when online fraud cases are rising despite the rapid adoption of UPI and card-based transactions.

For investors tracking Paytm, MobiKwik share price, and the broader stock market today, the concern was not about immediate financial impact, but about tighter oversight in the fintech ecosystem.

Rising Digital Frauds Put Spotlight on Payments Ecosystem

The RBI acknowledged that digital payments in India have grown at an unprecedented pace over the last decade. But this growth has also brought a sharp rise in frauds.

As per RBI data:

• FY 2024–25
  • 13,469 cases of card and internet fraud
  • Total loss: ₹520 crore
• FY 2023–24
  • 29,080 cases
  • Total loss: ₹1,457 crore

A key insight shared by the RBI stood out:

• 65% of fraud cases involved transaction amounts below ₹55,000

While these frauds may be small in value individually, their sheer volume has pushed the regulator to rethink customer liability and compensation.

This context explains why UPI-focused companies like Paytm and MobiKwik came into focus on the stock market today

What the RBI Said About Customer Responsibility?

Addressing questions after the policy announcement, the RBI Governor made it clear that compensation would apply even in cases where customers were defrauded after sharing details such as OTPs—provided the loss was unintended.

However, the compensation framework will come with conditions:

• ₹25,000 is the maximum limit
• Compensation will be one-time only
• Certain rules and safeguards will apply
• Customers are expected to learn from past mistakes

These remarks reinforced that while customer protection is a priority, accountability will still matter.

Broader Regulatory Push on Digital Safety

Beyond fraud compensation, the RBI also outlined additional steps aimed at strengthening the financial system:

• Guidelines on mis-selling by lenders
• Rules around loan recovery practices
• Oversight on the use of agents for debt recovery
• A discussion paper on enhancing digital payments safety
• Possible introduction of:
  • Lagged credits
  • Additional authentication, especially for senior citizens

The central bank also highlighted the need to ensure that third-party products sold at bank counters match the risk appetite and needs of customers.

Company Context: Why Paytm and MobiKwik Matter?

Both Paytm and MobiKwik are closely linked to India’s UPI and digital payments ecosystem. Any regulatory move around fraud liability, compensation, or authentication naturally draws attention to these platforms.

That explains why Paytm and MobiKwik share price movements mirrored investor caution, even though no company-specific announcements were made.

In the short term, regulatory headlines often shape sentiment more than fundamentals.

Summary

• Paytm and MobiKwik share price fell up to 3.5% on February 6
• The move followed an RBI announcement on compensating small-value digital frauds
• Proposed compensation:
  • Up to ₹25,000
  • One-time
  • Linked to unintended fraud losses
• RBI data shows:
  • ₹520 crore loss in FY25 (till date)
  • 65% of cases below ₹55,000
• The RBI is also preparing wider rules on digital payments safety, mis-selling, and recovery practices

For now, the market reaction reflects regulatory caution rather than company-specific changes. As digital payments deepen across India, regulatory clarity will remain a key factor shaping sentiment in the stock market today, especially for UPI-focused stocks like Paytm and MobiKwik.

Source: Moneycontrol