Paytm’s stock tumbles after RBI ban on banking services, share price hits lower circuit.

Paytm Share Price Plummeted by 20% on RBI’s Ban on Banking Services

📉 Paytm shares experience a significant drop in the stock market as the Reserve Bank of India (RBI) takes action against the company’s banking services. On Wednesday, when the market opened after the budget announcement, Paytm shares plummeted, hitting the lower circuit by 20%.

💥 Paytm’s parent company, One 97 Communications Limited, witnessed a sharp decline in its shares as they opened at Rs 609, down by 20%, and reached a low of Rs 152.20 when the market opened. The market capitalization of Paytm’s M-Cap also dropped to Rs 38,680 crore.

📉 The shares of Paytm had reached a high of Rs 998.30 in the past 52 weeks.

🚫 RBI imposed a ban on Paytm’s banking services on the previous working day, prohibiting the company from adding new customers. This ban also restricts any deposits or top-ups in accounts, wallets, and FASTags through Paytm Payments Bank after February 29, 2024.

💰 However, customers will still be allowed to withdraw or use the remaining balance in their savings accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards without any restrictions.

❓ Why did RBI take action against Paytm?
After a verified audit report and external auditors’ findings, non-compliance with banking regulations and concerns over content monitoring in Paytm’s banking services were revealed. As a result, RBI decided to impose restrictions on Paytm and its banking services. Along with the ban on adding new customers, existing customers will also face restrictions on transactions in their accounts from February 29, 2024.

The recent RBI action has had a significant impact on Paytm’s share price, causing a stir in the market. As the company faces challenges in its banking services, investors and customers are closely monitoring its future prospects.

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