• Source:JND
Add as a preferred

Paytm Share: The shares of one97 Communication, Paytm's parent company, locked in another 5% upper circuit on Monday after the Reserve Bank of India ordered the National Payment Corporation of India (NPCI) to consider Paytm's request to become a third-party provider for the Unified Payments Interface (UPI). Payments.

Shares of Paytm rose 5% to ₹427.95 on the BSE in early trade on February 26.

Today's gain came after RBI directed the National Payments Corporation of India (NPCI) to consider Paytm's request as a Third Party Application Provider (TPAP). Last week, NPCI was asked by RBI to consider the request of One97 Communication as Third Party Application Provider for its UPI channel, RBI said.

Also Read: GSTN To Share Data With RBI's Frictionless Credit Platform

If NCPI approves the directive, this will allow Paytm to make payments through UPI but will require newly identified banks to back up the app.

Paytm stock took a hit after January 31 after RBI's crackdown on Paytm Payment Bank. The stock fell 60 per cent in the early session of February. However, Paytm shares started a recovery path last week and touched the 5 per cent upper circuit for three consecutive sessions.

Paytm on February 16 recovered 27 percent of its losses to hit a 52-week low of Rs 318, while the fintech stock was trading 46 percent below its January 31 closing price of Rs 761.20.

The RBI said on Friday that NPCI will facilitate four to five banks to act as service providers for Paytm capable of processing large-scale UPI payments.

Reserved Bank had barred Paytm Payments Bank Ltd (PPBL) from accepting additional credits in its customer accounts and wallets after March 15, 2024. The deadline was earlier set for February 29, but later it got an extension.

According to the Reserve Bank, the move was considered to ensure seamless digital payments by UPI customers using Paytm Payment Bank for UPI.

Also Read: Byju's Terms Move Invalid After Shareholders Vote To Oust CEO Byju Raveendran