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One97 Communications shares slump to all time low after RBI’s curbs on Paytm bank

By Ruchi Upadhyay 
Updated Date

Noida: Shares of One97 Communications, the parent company of digital payments major Paytm, tanked as much as 13 per cent to hit a new low of Rs 677 on the BSE in Monday’s intra-day trade after Reserve Bank of India (RBI) has barred Paytm Payments Bank, founded by Vijay Shekhar Sharma, from onboarding new customers until a comprehensive audit of its information technology system is done.

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The stock feel below its previous low of Rs 728.50 touched on March 8, 2022. The stock has now declined 69 per cent when compared with its issue price of Rs 2,150. The company made its market debut on November 18, 2021.

Furthermore, the banking regulator has directed Paytm PB to appoint an IT audit firm for conducting a comprehensive system audit of its IT system. Paytm PB will need specific permission from the RBI to restart the onboarding of customers following a review of the audit. Paytm has said that, PPBL, was taking immediate steps to comply with RBI directions and was looking to appoint a reputed external auditor to conduct a comprehensive systems audit of its IT systems.

The company said the RBI order 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, in an exchange filing.

Also Read :- Vijay Shekhar Sharma again became MD and CEO of Paytm for another 5 years
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