On March 15, the share prices of One97 Communications Ltd, the parent company of Paytm, experienced a notable decline, plunging by as much as 5 per cent and triggering the third lower circuit for three consecutive days. However, amidst this downturn, a significant development emerged as the National Payments Corporation of India (NPCI) granted approval to One97 Communications Limited to partake in UPI services as a Third-Party Application Provider (TPAP) through collaboration with four major banks: Axis Bank, HDFC Bank, State Bank of India, and YES Bank.
NPCI’s Approval: Implications for Paytm’s Share Prices
The endorsement from NPCI holds promise for a potential rebound in Paytm’s share prices. Despite the recent downtrend, this approval signifies a crucial milestone for Paytm, potentially instilling renewed investor confidence and positively impacting its market performance. Notably, the preceding day, March 14, witnessed a continuation of the downward trajectory in Paytm’s share prices, even amid reports of NPCI’s ongoing efforts to certify Paytm’s application as a third-party payment app.
Performance Recap: Paytm’s Share Fall on March 14
On March 14, Paytm’s share prices experienced a substantial decline of 4.98 per cent, reaching a low of ₹334.35 on the BSE. This marked the fourth consecutive day of decline, with the stock plummeting by 17 per cent over the four-day period. Furthermore, it is noteworthy that Paytm’s current valuation stands at a significant 66.50 per cent lower than its 52-week high of ₹998.30 recorded in October of the previous year.
Paytm Payments Bank Deadline Looms
Adding to the dynamics affecting Paytm’s market performance is the impending deadline concerning Paytm Payments Bank Ltd (PPBL). The Reserve Bank of India (RBI) has imposed restrictions on PPBL, citing persistent non-compliance and material supervisory concerns, thereby prohibiting the acceptance of fresh deposits or top-ups after March 15.
In response to this regulatory development, a Paytm Spokesperson emphasized the continuity of One97 Communications’ services, including the Paytm app and associated merchant devices. Additionally, the spokesperson highlighted the ongoing efforts to expand the financial services distribution platform in collaboration with esteemed institutions.
In conclusion, while Paytm’s recent share price fluctuations may have raised concerns among investors, the approval from NPCI for its participation in UPI services and the strategic initiatives undertaken amidst regulatory challenges depict a narrative of resilience and adaptability. As March 15 unfolds, the market awaits eagerly to assess the implications of these developments on Paytm’s share price trajectory and its positioning within the digital payment landscape.
