One97 Communications‘ share price hit 20 percent lower circuit on February 1, 2024, a day after the Reserve Bank of India (RBI) imposed business restrictions on the company.
In a Press Release dated March 11, 2022, the Reserve Bank of India, in the exercise of its powers under section 35A of the Banking Regulation Act, 1949, directed Paytm Payments Bank Ltd (PPBL or the bank) to stop onboarding new customers with immediate effect.
The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action. Accordingly, in the exercise of its powers under section 35A of the Banking Regulation Act, 1949 and all other powers enabling it on that behalf, the Reserve Bank of India, has directed PPBL as:
1. No further deposits credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime.
2. Withdrawal or utilization of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance, the release said.
3. No other banking services, other than those referred, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU, and UPI facility should be provided by the bank after February 29, 2024.
4. The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.
5. Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024, and no further transactions shall be permitted thereafter, the RBI release said.
At 10:30 AM, the stock was trading at a 20 percent lower circuit at Rs 608 per share on BSE, down Rs 152.20.
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