Paytm Plunges 10% Again, Hitting Lower Circuit for Third Day

5 Feb 2024 , 02:55 PM

On February 5, Paytm’s stock faced another significant decline, dropping by 10% and hitting the lower circuit once again. This extends the fall to over 42% over the last three trading sessions. The consecutive lower circuits come in the aftermath of regulatory measures imposed by the Reserve Bank of India (RBI) on its payments bank unit.

Since the RBI announced sweeping restrictions on One97 Communications’ payments bank business, which include limitations on accepting new deposits and conducting credit transactions after February 29, Paytm’s stock has experienced a notable decline. The stock has plummeted from ₹761.4 to ₹438.5 as of Monday morning.

In response to speculation, Paytm clarified in a regulatory filing that there is no ongoing investigation by the Enforcement Directorate on One97 Communications Ltd (OCL), its associates, or its Founder and CEO for anti-money laundering activities. The fintech major categorically denied any such inquiries in its statement.