Paytm has finally received relief after several months, as it now has permission to add new users.
One97 Communications Limited, the parent company that operates Paytm, has gained approval from the National Payments Corporation of India (NPCI) to onboard new UPI users.
It’s important to note that around nine months ago, the Reserve Bank of India (RBI) had banned Paytm from adding new UPI users, which caused a significant setback for the company.
A letter was sent to Paytm CEO Vijay Shekhar Sharma
The National Payments Corporation of India (NPCI) has sent a letter to Vijay Shekhar Sharma, the founder and CEO of the company.
In the letter, NPCI Chief Dilip Asbe stated that Paytm is now permitted to add new customers, provided it follows specific conditions.
This permission is granted under the condition that the company complies with NPCI’s official guidelines and agreements with payment service providers.
NPCI issued this approval after closely reviewing Paytm’s performance over the past few months.
NPCI granted the company permission along with all the required conditions
In a filing on Tuesday, Paytm announced that the National Payments Corporation of India (NPCI) has granted approval for the company to add new UPI users, subject to NPCI’s conditions. The approval letter was issued to the company on October 22, 2024.
The stock experienced a significant decline following the RBI ban
Months ago, when this news caused a significant drop in Paytm’s shares, there were many speculations suggesting that this setback would be too big for the company to recover from.
However, despite fluctuations in the shares of the Noida-based company, Paytm remained resilient.
Now, with permission to add new UPI users, its shares are expected to start growing again from today.
