Paytm shares tank over 13 pc

Shares of One 97 Communications Ltd, the parent firm of Paytm, on Monday tumbled over 13 per cent after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid material supervisory concerns observed in the bank.The stock tanked 13.25 per cent to Rs 672.10 -- the lowest since its listing -- on the BSE.At the NSE, it tumbled 13.29 per cent to Rs 672.This is the third time that Paytm Payments Bank is facing action from the banking regulator since its inception in May 2017.

Shares of One 97 Communications Ltd, the parent firm of Paytm, on Monday tumbled over 13 per cent after the RBI asked Vijay Shekhar Sharma-promoted Paytm Payments Bank to stop opening new accounts amid ''material supervisory concerns'' observed in the bank.

The stock tanked 13.25 per cent to Rs 672.10 -- the lowest since its listing -- on the BSE.

At the NSE, it tumbled 13.29 per cent to Rs 672.

This is the third time that Paytm Payments Bank is facing action from the banking regulator since its inception in May 2017. It has been prohibited from opening new accounts for the second time.

''Reserve Bank of India has today, in exercise of its powers, inter alia, under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd to stop, with immediate effect, onboarding of new customers,'' the central bank said in a statement.

Sharma holds a 51 per cent stake in Paytm Payments Bank (PPBL), while the remaining 49 per cent is held by Paytm.

The bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.

''Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors. This action is based on certain material supervisory concerns observed in the bank,'' it said.