Paytm gets RBI prelim nod to operate wallets; shares surge to 52-week high
Paytm's payment services arm received preliminary RBI approval to operate as a prepaid payment instrument issuer, causing the company's stock to reach a 52-week high. The company is also expected to benefit from upcoming changes to the UPI merchant discount rate framework.
Why it matters
This regulatory approval is a significant milestone for Paytm's digital payments business, signaling a recovery and potential growth in the competitive Indian fintech market.
NEW DELHI: Paytm's payment services arm on Friday received preliminary authorisation from the Reserve Bank of India (RBI) to operate a payment system for issuing prepaid payment instruments, including wallets, sending shares of parent company One 97 Communications to a record high of Rs 1,960.The approval marks a significant development for Paytm's payments business, allowing it to expand its offerings in the digital payments segment. Prepaid payment instruments allow users to store money digitally and use it for transactions.The latest rally follows a strong run in the stock. On Thursday, Paytm shares surged 7.31 per cent to close at Rs 1,925, crossing the Rs 1,900 mark for the first time since its 2021 listing.
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