Shares of Paytm were locked at a 20% lower circuit on 1 February after RBI (Reserve Bank of India) dealt a fatal blow to the company by putting restrictions on the company’s lending business, including putting an immediate stop to new credit and deposit operations, fund transfers, top-ups, and other such banking operations by the end of February.

The curb came after the regulator discovered persistent non-compliance and major supervisory concerns at the payments bank, thus forcing RBI to take such drastic actions.

The company, in its exchange filing, said that they are taking immediate steps to comply with the RBI’s directions, which include working with them to address their concerns as soon as possible.

The company further added that depending on the nature of the resolution, they expect an impact of Rs 300-500 crore on its annual EBITDA. However, they expect the company to continue on its trajectory to improve its profitability.

The filing added, “We offer acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships. The Paytm Payment Gateway business will continue to offer payment solutions to its existing merchants.”

At 1:33 pm, the shares of Paytm were locked 19.99% lower at Rs 609 on NSE.