Paytm Hits Lower Circuit, Shares Down 20% After RBI Restrictions
On March 11, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect.
Paytm’s stock fell to a six-week low of 609 rupees.
Paytm, the Indian payments company, experienced a 20% decline in pre-market trading on Thursday. This followed a regulatory decision in India to suspend operations at Paytm’s payments bank unit, raising concerns about potential impacts on the company’s financial performance and reputation.
Paytm’s stock fell to a six-week low of 609 rupees.
RBI Decision On Paytm
In a major action against Paytm Payments Bank (PPBL), the Reserve Bank of India on Wednesday directed the lender to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. However, any interest, cashbacks, or refunds may be credited back to customers anytime.
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement.
On March 11, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect.
