Paytm Stocks surge by 5 Percent as RBI relaxes Deadline
One97 Communications, the parent company of Paytm, saw its shares hit the upper circuit, soaring by 5% during morning trading. On the BSE and NSE, the stock climbed to Rs 358.55 and Rs 358.35 per share, respectively. The surge was attributed to Paytm's recent partnership with Axis Bank for merchant payment settlements, coupled with the RBI extending the deadline to March 15 for winding up operations of Paytm Payments Bank.
One97 Communications recently transferred its nodal account from Paytm Payments Bank to Axis Bank, aiming to maintain the seamless provision of Paytm services like Paytm QR, soundbox, and card machines. In response to RBI's directive, customers and merchants of Paytm Payments Bank Ltd (PPBL) were instructed to migrate their accounts to alternative banks by March 15, facilitating the closure of most of PPBL's operations.
Following RBI's directive, Paytm's shares took a nosedive as the central bank instructed Paytm to halt its Payments bank operations due to non-compliance with regulations despite multiple warnings. Following the RBI's order on January 31, Paytm Payments Bank Ltd (PPBL) ceased deposit, credit transactions, and top-ups in customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards after February 29.