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Paytm hits lower circuit for third straight session, wipes out $2.5 bn in market cap

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Paytm hits lower circuit for third straight session, wipes out $2.5 bn in market cap

Indian digital payments firm Paytm has seen its shares drop for a third consecutive session, resulting in a $2.5 billion decrease in market value. This decline follows a regulatory crackdown by the Reserve Bank of India (RBI) last week, which led to uncertainty surrounding Paytm's business operations. The RBI instructed Paytm Payments Bank to cease accepting fresh deposits in its accounts and digital wallets from March. The RBI alleged non-compliance with regulations related to customer due diligence, use of funds, and technology infrastructure. Paytm's stock fell by 10% on the Bombay Stock Exchange, reaching a record low. The RBI has passed information to the Enforcement Directorate, hinting at concerns of potential money laundering activities.

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