“We would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars,” the company stated in a stock exchange filing.
This comes after the Reserve Bank of India on January 31 this year directed Paytm Payments Bank to stop deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc after February 29, 2024, other than any interest, cashback, or refunds that may be credited anytime.
This approval, communicated via a letter dated October 22, 2024, comes after onboarding was halted in compliance with RBI directives earlier in the year.
The NPCI approval is contingent upon Paytm’s adherence to procedural guidelines and circulars related to risk management, brand guidelines, multi-bank support, and customer data protection.
Paytm must also comply with applicable laws and regulations, including the Payments and Settlement Act, of 2007, and the Digital Personal Data Protection Act, of 2023.On Tuesday, Paytm’s shares closed at Rs 687.3, down 5.3% on the NSE, while the benchmark Sensex plunged 1.15%. The shares have surged 6% in 2024 to date and 9% over the past two years, with the company currently holding a market capitalization of Rs 43,762 crore.Meanwhile, the fintech company also reported a consolidated profit after tax (PAT) of Rs 928.3 crore for the quarter ended September 2024, compared to a loss of Rs 290.5 crore in the corresponding quarter of the previous fiscal year, due to a one-time gain.
Paytm’s revenue dropped 34% year-on-year (YoY) to Rs 1,660 crore against Rs 2,519 crore in the corresponding quarter of the previous year.
Paytm attributed the profit to a one-time exceptional gain of Rs 1,345 crore on account of the sale of entertainment ticketing business to Zomato earlier this year.
On a sequential basis, Paytm’s revenue rose 11% due to a 5% quarter-on-quarter (QoQ) increase in GMV, better device realisation, and a 34% QoQ increase in revenues from financial services.
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