Why Paytm Share Price Hit 5% Upper Circuit?

One97 Communications (Paytm) share price spiked 5 percent hitting the upper circuit of Rs 370.90 per share on BSE. The comes after a nod to become a third-party UPI app.

National Payments Corporation of India (NPCI) approved One97 Communications Limited to participate in UPI as a Third-Party Application Provider (TPAP) under a multi-bank model, Paytm said in an exchange filing.

“Four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Payment System Provider) banks to OCL. YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” the company added.

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Paytm Payments Bank’s share price has been hitting lower circuits because the RBI has banned it from conducting certain operations. The NPCI has advised Paytm to migrate all existing handles and mandates to new PSP banks as soon as possible. A PSP bank enables customers to sign up for UPI through its app or another service. It links their bank accounts to their UPI IDs.

At 10:44 AM, the stock hit a 5 percent upper circuit of Rs 370.90 per share on BSE.

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