Warren Buffett's Berkshire Hathaway exited Paytm two months ago, prior to RBI action

Two months prior to RBI imposing stringent curbs on Paytm Payments bank, Berkshire Hathaway, owned by Warren Buffett, divested its entire stake in One97 Communications Ltd, Paytm's parent company.

In a substantial block deal in November, Berkshire Hathaway offloaded 2.5% equity valued at approximately 1,370 crore rupees at a share price of 877 rupees, booking a loss of around 600 crore rupees.

Also read/watch - RBI action on Paytm: CEO Vijay Shekhar Sharma calls it a 'speed bump'

Buffett initially acquired a 2.6% stake in Paytm in 2018, investing nearly 2,200 crore rupees. This move follows a trend where notable investors like SoftBank and Alibaba Group who have also reduced or exited their Paytm holdings in the past year.

RBI's move on Paytm Payments Bank

In stringent action against Paytm Payments Bank (PPBL), the Reserve Bank of India on Jan 31st, 2024 directed the lender to stop accepting deposits or top-ups in in customer accounts, wallets, FASTags and other instruments after February 29. However, any balance on Paytm wallet, payments bank account, FASTags etc, can be withdrawn or utilised.