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Paytm share price up 5% after NPCI grants third-party app license: Will it recover?
Paytm Share Price today: Paytm up after NPCI grants third-party app license
Paytm Share Price today: Shares of India's Paytm rose 5%, a day after National Payments Corporation of India (NPCI) granted approval to Paytm's parent company One97 Communications Limited (OCL) to participate in UPI services as a Third-Party Application Provider (TPAP).
Read more: Paytm gets regulatory nod to become a third-party UPI app: What it means for you
What NPCI said in its approval for Paytm?
NPCI said in a statement, “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.”
NPCI also advised Paytm to migrate all existing handles and mandates to new PSP banks at the earliest. Four banks - SBI, Axis Bank, HDFC Bank, and YES Bank will act as payment service providers to Paytm.
Read more: Is your Paytm FASTag account closed? How to check Paytm FASTag status
How has Paytm stock been performing?
Paytm's stock has been hitting lower circuits following RBI's ban on Paytm Payments Bank from conducting certain operations. So far this year, Paytm stock has crashed over 44 per cent hitting record low of ₹318 per share on February 16.
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Morgan Stanley on regulatory nod for Paytm
Morgan Stanley said this move is a positive development and in line with expectations. The brokerage firm said, “We will continue to await an update on the potential impact on the company's businesses during February 2024. We await updated commercials for the company as Paytm Payments Bank's business moves to other banks.”
Morgan Stanley shared an 'equal-weight' call on the counter with a target price of ₹555 which means that an upside of 57 per cent from current level is predicted by the brokerage firm.
