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Paytm shares slump 13 per cent after RBI's restrictions on payments bank

Categories: DAILY NEWS

                      Share price of Paytm`s parent company, One 97 Communications Ltd, slumped by around 13 per cent to hit an all-time low on Monday after the Reserve Bank of India (RBI) barred Paytm Payments Bank from onboarding new customers.At the BSE, One 97 Communications Ltd share closed 12.84 per cent down at Rs 675.35. The scrip slipped to a low of Rs 662.25 in the intra-day. This is the lowest ever price of One 97 Communications Ltd.

                     "Reserve Bank of India has today, in the exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers," the RBI had said on Friday."The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors," RBI said.

                   "The Company has been informed that this does not impact any existing customers of PPBL, who can continue to use all banking and payment services without interruption. All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag, and bank accounts can continue to use these instruments, including debit cards and net banking, for payments," Paytm's parent firm said.

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