NEW DELHI: Shares of Paytm’s parent company, One97 Communication, hit upper circuit on Friday following National Payments Corporation of India (NPCI) approval to join UPI as a Third-Party Application Provider (TPAP) under a multi-bank model.
Paytm shares surged nearly 5% or 17.65 points to 370.70 from its previous close of 353.05.
Paytm will collaborate with Axis Bank, HDFC Bank, State Bank Of India Ltd, and Yes Bank for its UPI services.
Analysts believe that this development is a positive step and will facilitate a smooth transition for customers and merchants. Jefferies India Pvt Ltd stated, ‘The approval removes the final regulatory hurdle for Paytm.’
Paytm faced a drastic drop of over 50% in its share price following regulatory actions by the Reserve Bank of India against Paytm Payments Bank Limited on January 29.
RBI had earlier directed NPCI to review Paytm’s application to operate as a TPAP for UPI. This move ensures that Paytm can continue using UPI in compliance with regulations.
Analysts anticipate a shift in investor focus from regulatory challenges to operational performance.
