Paytm Gains Approval to Onboard New UPI Users, Boosting Shares

The National Payments Corporation of India has lifted restrictions on Paytm, allowing the fintech firm to resume adding new digital payment users after compliance issues led to an eight-month halt.

Paytm's shares surged over 11% following the NPCI's approval to onboard new UPI users, alleviating a major regulatory hurdle.
The approval comes after the Reserve Bank of India had restricted Paytm due to compliance issues, causing a significant drop in its user base and stock value.
With the new approval, analysts expect Paytm to rejuvenate its monthly transacting user numbers, which had fallen from 100 million to 70 million.
Paytm reported a net profit of ₹930 crore for the September quarter, aided by a one-time gain from the sale of its entertainment ticketing business.
Despite the recent gains, Paytm still faces challenges, including obtaining a payment aggregation license from the RBI.