Paytm shares rise - heres whats driving the stock

Written By: Shivani Tiwari New DelhiZeeBiz WebDesk Updated on: March 27, 2023, 04.49 PM IST

Paytm share price: The stock of One97 Communications, which owns and operates digital payments company Paytm, registered mild gains on Monday.

Paytm share price: The stock of One97 Communications, which owns and operates digital payments firm Paytm, rose on Monday after the company said it had received an additional 15 days to from the RBI for resubmitting an application for payment aggregator services. Paytm shares gained by 3.2 or 0.5 per cent to settle at Rs 622.5 apiece on BSE.

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Paytm subsidiary Paytm Payments Services Ltd (PPSL) can continue with the online payment aggregation business as it awaits government approval for past investment from One97 Communications as per FDI guidelines, the digital payments company said citing an RBI letter.

The latest extension comes after the RBI paused the onboarding of online merchants by Paytm Payments Services (PPSL) in November 2022, and granted the company 120 days to resubmit its application seeking authorisation to provide payment aggregator services for online merchants.

"As per RBI’s letter, on receipt of approval from GoI, PPSL will have fifteen days to submit the application seeking authorisation for PPSL to operate as an online PA. However, if any adverse decision is taken by the GoI, then the same shall be informed to RBI immediately. During this process, PPSL can continue with its online payment aggregation business for existing partners, without onboarding any new merchants," Paytm said in a regulatory filing.

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Paytm requires a permit to operate its payment gateway business through which it facilitates payments to various merchants.

The company said that during the pending process, PPSL can continue with its online payment aggregation business for existing partners without onboarding any new merchants.

"This continues to have no material impact on our business and revenues since the communication from RBI is applicable only to onboarding of new online merchants and we can continue to provide payment services to our existing online merchants," the filing added.

Paytm share price history

The Paytm stock has gained 17 per cent on a year-to-date basis, a period in which Nifty50 headline index has declined 6.5 per cent.

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