Paytm Shares Plunge 11% After Restrictions Imposed On Paytm Bank

Shares in One97 Communications, the parent company of Paytm, fell much as 11 per cent and even to a new low of Rs 677 on the BSE after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from onboarding new customers.

"Reserve Bank of India has today, in 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 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. This action is based on certain material supervisory concerns observed in the bank," the RBI said in a release.

Shares in Paytm were down 11.50% at Rs 686 per share on the NSE.