Shares of One 97 Communications Ltd. (Paytm) rallied 6%, reaching a day’s high of Rs 731.15 on 23rd October after the firm announced it had received approval from the National Payments Corporation of India (NPCI) to resume onboarding new users to its Unified Payments Interface (UPI) platform.

A stock exchange filing announced that on 22nd October 2024, the National Payments Corporation of India (NPCI) approved the company to onboard new UPI users, ensuring adherence to NPCI’s procedural guidelines and circulars.

This approval follows the Reserve Bank of India’s directive on 31st January 2024, which instructed Paytm Payments Bank to halt deposits, credit transactions, and top-ups in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after 29th February 2024, except for interest, cashback, or refunds which can be credited at any time.

The NPCI approval, communicated on 22nd October 2024, comes after Paytm halted onboarding earlier this year in line with RBI directives. The approval requires strict adherence to guidelines on risk management, brand standards, multi-bank support, and customer data protection.

To resume onboarding new UPI users, Paytm must also comply with relevant laws and regulations, including the Payments and Settlement Act of 2007 and the Digital Personal Data Protection Act of 2023.

At 10:51 AM, the shares of Paytm were trading 6.27% higher at Rs 729.50 on NSE.

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