The regulatory actions were taken after giving the firm sufficient time to comply, RBI deputy governor Swaminathan J said at a press conference following the central bank's monetary policy review.
Paytm stock has been under pressure since the RBI announced restrictions on Paytm Payments Bank’s operations amid persistent non-compliances and continued material supervisory concerns.
Shares of parent company One97 Communication edged 43.35 points, or 9.61 per cent higher at 494.50, a day after surging nearly 10 per cent. RBI's decision resulted in the Vijay Shekhar Sharma led platform losing $2.5 billion off its market valuation.