Paytm hits upper circuit as NPCI allows UPI operation via SBI, 3 other banks – Newz9

NEW DELHI: Shares of Paytm‘s dad or mum firm, One97 Communication, hit upper circuit on Friday following National Payments Corporation of India (NPCI) approval to hitch UPI as a Third-Party Application Provider (TPAP) beneath a multi-financial institution mannequin.
Paytm shares surged almost 5% or 17.65 factors to 370.70 from its earlier shut of 353.05.
Paytm will collaborate with Axis Bank, HDFC Bank, State Bank Of India Ltd, and Yes Bank for its UPI providers.
Analysts imagine that this growth is a optimistic step and can facilitate a clean transition for purchasers and retailers. Jefferies India Pvt Ltd acknowledged, ‘The approval removes the ultimate regulatory hurdle for Paytm.’
Paytm confronted a drastic drop of over 50% in its share value following regulatory actions by the Reserve Bank of India in opposition to Paytm Payments Bank Limited on January 29.
RBI had earlier directed NPCI to overview Paytm’s software to function as a TPAP for UPI. This transfer ensures that Paytm can proceed utilizing UPI in compliance with laws.
Analysts anticipate a shift in investor focus from regulatory challenges to operational efficiency.