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Shares of One97 Communications Ltd, which owns Paytm brand, plummeted 20% on Thursday as the Reserve Bank of India (RBI) directed Paytm Payments Bank Ltd to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29.

The stock cracked 20% to Rs 608.80, its lower circuit limit, on the Bombay Stock Exchange.

At the National Stock Exchange, it tumbled 19.99% to hit the lowest trading permissible limit for the day of Rs 609.

The company’s market capitalisation also eroded by Rs 9,646.31 crore to Rs 38,663.69 crore in early trade.

The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement.

However, any interest, cashbacks, or refunds may be credited back to customers anytime, it added.

The RBI also said the nodal accounts of One97 Communications Ltd and Paytm Payments Services are to be terminated at the earliest, in any case, not later than February 29, 2024.

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RBI order to have impact of Rs 300-500 cr on annual operational profit: Paytm

One97 Communications Ltd, which owns the Paytm brand, holds a 49% stake in Paytm Payments Bank Ltd but classifies it as an associate of the company and not a subsidiary.

The RBI’s order will have an impact of Rs 300 crore to Rs 500 crore on annual operational profit of the company.

“Depending on the nature of the resolution, the company expects this action to have a worst case impact of Rs 300-500 crore on its annual EBITDA going forward. However, the company expects to continue on its trajectory to improve its profitability,” Paytm said in a regulatory filing.