Paytm Shares Rise 5 Per Cent, Hit Upper Circuit

This collaboration was formalised through a regulatory filing made by One97 Communications on Friday, wherein it disclosed the transition of its nodal account to Axis Bank from its subsidiary, Paytm Payments Bank

The RBI had previously directed customers and merchants associated with PPBL to shift their accounts to alternative banks by March 15.

One97 Communications, the parent company of Paytm, saw a surge in its share value by 5 per cent during morning trading on Monday. This hike follows the announcement of a collaboration with Axis Bank, aimed at facilitating continued merchant settlements amid the ongoing crisis faced by the fintech firm.

Continuing its upward trajectory for the second consecutive session, One97 Communication's stock soared by 5 per cent each to reach Rs 358.55 and Rs 358.35 per share on the BSE and NSE, respectively, hitting its upper circuit limit. Simultaneously, the broader market indices also saw positive movement in morning trading. The 30-share BSE Sensex benchmark rose by 185.81 points or 0.26 per cent, reaching 72,612.45, while the NSE Nifty climbed by 0.32 per cent to touch 22,110.60 points.

This collaboration was formalised through a regulatory filing made by One97 Communications on Friday, wherein it disclosed the transition of its nodal account to Axis Bank from its subsidiary, Paytm Payments Bank (PPBL). This strategic move aims to ensure the uninterrupted operation of Paytm's services, including Paytm QR, soundbox, and card machines, beyond the March 15 deadline stipulated by the Reserve Bank of India (RBI).

The RBI had previously directed customers and merchants associated with PPBL to shift their accounts to alternative banks by March 15, thereby granting an additional 15-day window for the troubled entity to wind down most of its operations, including deposit and credit transactions.

Following this regulatory action by the RBI, Paytm had faced scrutiny from various regulatory bodies for alleged violations related to its payments bank operations. This led to a decline in Paytm's share value over the past few days, which saw a notable rebound of 5 per cent on Friday.

Under an order issued by the RBI on January 31, PPBL was instructed to cease further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, effective from February 29. Although One97 Communications holds a significant 49 per cent stake in PPBL, it categorises the payments bank as an associate rather than a subsidiary of the company.