Shares of One 97 Communications Ltd, the parent company of Paytm, were locked at a 5% upper circuit for the second straight day after the Reserve Bank of India (RBI) extended the deadline for its restrictions on Paytm Payments Bank and the fintech company announced a partnership with Axis Bank for the settlement of merchant payments.

Paytm’s shares opened 5% higher at Rs 358.35 on the National Stock Exchange. The stock will be locked at the 5% upper circuit throughout the trading session. 

On Friday, the RBI announced an extension of the deadline on various restrictions imposed on Paytm Payments Bank to March 15, 2024, a shift from the initial date of February 29. 

Customers will now have time till March 15 to make deposits or top-ups into their accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards (NCMC). However, customers can continue using, withdrawing, and transferring funds from their accounts. 

Additionally, RBI’s answers to the frequently asked questions about the matter suggested Paytm QR, Card machine and Soundbox will continue to work beyond March 15 only for merchants whose accounts are linked with banks other than Paytm Payments Bank. 

In an exchange filing, Paytm also announced that it has shifted its nodal account from Paytm Payments Bank to Axis Bank through an escrow account to ensure continuity and seamless merchant settlements.