(Bloomberg) -- India’s fintech giant Paytm is potentially fighting for its survival after the central bank ordered halting much of its business activities, according to Macquarie Group Ltd. Shares tumbled to a fresh low. 

After the recent RBI curbs, “Paytm faces a serious risk of customer exodus which significantly jeopardises its monetization and business model,” Macquarie analysts Suresh Ganapathy and Punit Bahlani, wrote in a note. They downgraded their rating on One 97 Communications Ltd., the parent of Paytm, to underperform from neutral, and slashed the price target to 275 rupees from 650.

Shares of Paytm fell as much as 8.6% to 385.75 rupees in early Mumbai trading on Tuesday.

Paytm, the poster boy of India’s fintech sector, has been in the eye of a regulatory storm after the Reserve Bank of India found persistent non-compliance at Paytm Payments Bank and prohibited the unit from taking on new customers and fresh deposits after Feb. 29.

The regulatory action has sharply hit Paytm’s shares, which have erased about $3 billion of market value since the curbs were announced after the close of trading hours on January 31.

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