Paytm Shares Surge as NPCI Clears UPI Onboarding

Paytm shares rose over 8% after the NPCI approved the company to onboard new UPI users, providing a significant relief following RBI's restrictions earlier. The NPCI's approval allows Paytm to operate as a Third-Party Application Provider through four banks, boosting its market value significantly.

Shares of One97 Communications, the parent company of fintech giant Paytm, experienced a significant increase of over 8% on Wednesday. This surge followed the National Payments Corporation of India's (NPCI) approval permitting Paytm to onboard new UPI users, conditional on adherence to established procedural guidelines and circulars.

On the Bombay Stock Exchange (BSE), Paytm's stock rose by 8.40%, closing at Rs 745 per share, after an intra-day high of Rs 771.25, marking a 12.21% spike. Simultaneously, on the National Stock Exchange (NSE), the stock climbed 7.53% to end at Rs 738.20 per share.

This development comes as a relieving stride forward for Paytm, particularly after the Reserve Bank of India imposed restrictions earlier in the year on Paytm Payments Bank Limited (PPBL) regarding the onboarding of new UPI users. The NPCI's nod enables Paytm to function as a Third-Party Application Provider in collaboration with SBI, Axis Bank, HDFC Bank, and YES Bank, thereby elevating the company's market valuation by Rs 3,680.36 crore to Rs 47,436.58 crore.

(With inputs from agencies.)