Shares of One97 Communications, the parent company of Paytm, are set to be in focus today following the company’s announcement on Tuesday regarding its approval from the National Payments Corporation of India (NPCI) to resume onboarding new users onto its Unified Payments Interface (UPI) platform.
NPCI Approval to Resume Onboarding
In its exchange filing, the company stated, “We would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars.”
The approval allows Paytm to restart onboarding new UPI users, contingent upon its compliance with NPCI’s procedural guidelines and circulars regarding risk management, brand guidelines, multi-bank support, and customer data protection.
RBI Directive on Halting Operations
This approval comes after a significant halt to Paytm’s UPI operations earlier in the year. On January 31, 2024, the Reserve Bank of India (RBI) directed Paytm Payments Bank to cease deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, 2024. However, interest, cashback, or refunds were still allowed to be credited.
Adherence to Regulatory Frameworks
As part of the NPCI’s approval, Paytm must strictly adhere to relevant laws and regulations, including the Payments and Settlement Act, 2007, and the Digital Personal Data Protection Act, 2023.
This includes ensuring robust risk management systems and safeguarding customer data as part of its resumed operations.
Stock Performance in last one year
Paytm shares have demonstrated mixed returns across multiple time frames. Over the past month, the stock has given a commendable 3.37% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 81.74%, indicating a strong upward trend.
Year-to-date, Paytm shares have surged by 8.03%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered negative return of over 30% in the last twelve months.
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