One share price of 97 Communications Ltd (Paytm) gained 5% as it received much-awaited approval to participate in UPI as a Third Party Application Provider (TPAP). The same will be under a multi-bank model
Paytm getting approval from National Payments Corporation of India (NPCI) to act as a Third Party Provider (TPAP) comes as a big relief for the company. The move while positive is however also along expected lines said analysts. Paytm has partnered with four banks namely Axis Bank, HDFC Bank, State Bank Of India Ltd and Yes Bank for its UPI business. While the four banks will act as the payment Service providers while merchant acquiring bank for existing or new UPI merchants will be Yes Bank.
Analysts such as Jefferies India Pvt Ltd said the development removes the last remaining regulatory challenge to ensure a smooth transition of customers and traders.
Paytm’s share price has seen a steep drop of over 50% following the regulatory action by Reserve Bank of India. A significant restriction has been placed by RBI on the partner entity of One 97 Communications, Paytm Payments Bank Limited (PPBL). Following these restrictions after March 15, 2024, Paytm Payments Bank could no longer accept new deposits into its users’ wallets and accounts. However on February 23, 2024, the RBI advised NPCI to review the application of One97 Communication Ltd (OCL) to become a Third Party Application Provider (TPAP) for UPI channel to ensure that the Paytm app continues to function using UPI in compliance with regulations
(More to come)
Paytm
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Published: 15 Mar 2024, 09:24 IST