One 97 Communications stock hits an all-time low as RBI directs payments bank arm to stop onboarding new customers

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Shares of One97 Communications (Paytm) on Monday plunged 12.84 per cent to Rs 675.35 on the BSE amid selling pressure, after the RBI directed Paytm Payments Bank Ltd (PPBL) to stop onboarding new customers with immediate effect and conduct a comprehensive audit of its IT system citing “material supervisory concerns”.

“This action is based on certain material supervisory concerns observed in the bank,” the Reserve Bank of India (RBI) said last Friday.

Meanwhile, PPBL said it is taking immediate steps over the RBI move. “PPBL remains committed to working with the regulator to address their concerns as quickly as possible. PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption,” it said, adding, “The savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional.”

PPBL further said, “Source-based media reports claiming data leak to Chinese firms are completely false, inaccurate and unverified. The bank is fully compliant with RBI’s directions on data localisation and all of the users’ data resides within India.”

https://indianexpress.com/article/business/market/paytm-share-price-one-97-communications-stock-crashes-rbi-directs-payments-bank-arm-to-stop-onboarding-new-customers-7818771/