The National Payments Corporation of India has granted Paytm approval to onboard new UPI users, the company said in a statement. Prior to this development, Paytm shares rose by 6.06 percent to Rs 729 each on the BSE during morning trade.
The move will likely relieve Paytm, which was bruised earlier this year when the Reserve Bank of India imposed a blow on associate company Paytm Payments Bank Limited for not allowing new UPI users to be onboarded on the Paytm app.
The Paytm stock opened 4.1 percent higher at Rs 715.5 apiece on the BSE on Wednesday, which further went up within minutes to Rs 729 before it pulled back to Rs 710 — around 3 percent higher than the closing yesterday — after half an hour of opening.
According to the statement, Paytm’s approval from the NPCI is pending a conditional response stating that it complies with all procedural guidelines and circulars.
The NPCI has approved Paytm to join UPI as a TPAP as of March. The NPCI also allowed four banks—SBI, Axis Bank, HDFC Bank, and YES Bank—to continue UPI transactions.
Paytm said in a late evening filing on Tuesday that approval has been obtained from the NPCI to onboard new UPI users.
The Paytm filing attaching the NPCI letter granting the nod said, “…we would like to inform you that vide letter dated 22nd October 2024, the National Payments Corporation of India has accorded approval to the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars.”.
The letter follows that such approvals are strictly subject to compliance with all procedural guidelines and circulars issued by NPCI from time to time, including policies and circulars specifically on risk management, brand guidelines for the app and QR, multi-bank guidelines, and TPAP market share and customer data.
