RBI orders payments bank to stop business

RBI ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets from March. — Reuters

BENGALURU: Shares of Indian payments firm Paytm tumbled 20% yesterday, after a move by the country’s financial regulator to halt business at associate Paytm Payments Bank sparked fears of hits to the company’s profitability and reputation.

Paytm’s stock fell to a six-week low of 609 rupees, erasing around US$1.2bil in value from the company, also known as One 97 Communications. The stock was at an exchange-imposed lower circuit, limits imposed to prevent extreme price fluctuations.