Shares of One 97 Communications, the parent company of Paytm, opened at a 20% lower circuit for the second consecutive session following the Reserve Bank of India’s stringent measures against its lending business. 

Paytm’s shares opened at a 52-week low of Rs 487.20, at the lower circuit, which is 20% lower than its last closing price on the National Stock Exchange (NSE). Following the RBI’s orders, brokerages revised their outlook and downgraded Paytm’s shares, decreasing its target prices.

Additionally, the RBI has restricted the payment gateway from accepting new deposits in any customer account, prepaid instrument, wallet, or FASTags and carrying out credit transactions after February 29, 2024.

According to the filing, the company said this does not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, where they can continue using the existing balances. 

In response to the development, Paytm said it has temporarily halted its lending platform for a couple of weeks. The company added that it is engaged in discussions with banks for potential partnerships to address concerns. 

Paytm CEO Vijay Shekhar Sharma tweeted that Paytm Payments Bank is taking immediate steps to comply with the RBI directions, reassuring the company’s customers.