After the National Payments Corporation of India (NPCI) gave the business permission to onboard new UPI customers, provided that all procedural rules and circulars are followed, shares of Paytm, which is owned by One 97 Communications, surged 5% to an intraday high of Rs 722.50 on the BSE.
“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 company stated in a stock exchange filing.
In addition to any interest, cashback, or refunds that may be credited at any time, the Reserve Bank of India ordered Paytm Payments Bank on January 31 of this year to cease deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024.
After onboarding was delayed earlier in the year in accordance with RBI regulations, this clearance was conveyed via a letter dated October 22, 2024. Paytm’s compliance with procedural rules and circulars pertaining to risk management, brand guidelines, multi-bank support, and consumer data protection is a prerequisite for NPCI approval.
Additionally, Paytm must abide by all relevant laws and rules, such as the 2023 Digital Personal Data Protection Act and the 2007 Payments and Settlement Act.
On Tuesday, the benchmark Sensex fell 1.15%, while Paytm’s shares ended the day at Rs 687.3, down 5.3% on the NSE. With a market valuation of Rs 43,762 crore, the company’s shares have increased 6% so far in 2024 and 9% over the last two years.
On Tuesday, the benchmark Sensex fell 1.15%, while Paytm’s shares ended the day at Rs 687.3, down 5.3% on the NSE. With a market valuation of Rs 43,762 crore, the company’s shares have increased 6% so far in 2024 and 9% over the last two years.
As a result of a one-time gain, the fintech company also declared a consolidated profit after tax (PAT) of Rs 928.3 crore for the quarter that ended in September 2024, as opposed to a loss of Rs 290.5 crore in the same quarter a year earlier.
Paytm’s revenue decreased 34% year over year (YoY) to Rs 1,660 crore from Rs 2,519 crore in the same period last year.Due to the sale of its entertainment ticketing business to Zomato earlier this year, Paytm ascribed the earnings to a one-time exceptional gain of Rs 1,345 crore. Better device realisation, a 34% QoQ increase in financial services revenues, and a 5% QoQ increase in GMV all contributed to Paytm’s 11% sequential revenue growth.
