The shares of One 97 Communications (Paytm) slumped to record lows during morning trade on Monday following restrictions imposed on Paytm Payments Bank (PPBL), its associate company, by the Reserve Bank of India.

On the BSE, Paytm hit a new low of ₹672.10. At 10:30 am, it was trading at ₹687.50, down ₹87.30 or 11.27 per cent. It had opened at ₹684.00 against the previous close of ₹774.80.

On the NSE, it was trading at ₹687.80, down ₹87.25 or 11.26 per cent, after hitting a new low of ₹672.

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RBI directs Paytm Payments Bank to stop onboarding of new customers
Directs bank to appoint an IT audit firm to conduct a comprehensive system audit of its IT system

The RBI had on March 11 directed PPBL to stop, with immediate effect, the onboarding of new customers. RBI has observed certain material supervisory concerns at PPBL. The bank is taking immediate steps to comply with RBI directions, including appointment of a reputed external auditor to conduct a comprehensive system audit of its IT systems.

In a clarification, PPBL said it remains committed to working with the regulator to address its concerns as quickly as possible. The company has been informed that this 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.