Paytm Breaking News
Relief to Paytm by the reserve Bank of India. RBI has given in-principle approval to the entity of Paytm — Paytm Payment Services Limited (PPSL) to function as an online payment aggregator. In addition, the prohibition on new merchant participation has also been removed. The news came in Tuesday late night for which it is assumed that huge activity can be witnessed in Paytm shares on Wednesday. Paytm Breaking News
PPSL wholly-owned by One 97 Communications Ltd.
RBI rejected Paytm application for payment aggregator license and asked to re-apply in FDI rules with RBI: November 2022. In this light, Paytm was also barred at the time from signing up new merchants, a decision that has now been overturned with this approval. This authorization from the RBI has been done under the Payment and Settlement Systems Act, 2007.This approval by RBI was disclosed through stock exchange filings carried an official letter of the apex bank dated August 12, 2024. The RBI letter clarified that the approval is only for online payment aggregator operations and not other payment activities beyond as contained in its scope.
According to the letter signed by Anjani Kumar, deputy general manager at the digital payments division of RBI, “This in-principle approval is limited to own activities as an online payment aggregator and does not extend beyond such business case as detailed in PA-PG guidelines.” Pay out transactions conducted by merchants etc., which are not covered under these guidelines shall be in the scope of the escrow account maintained for PA operations. With this approval, Paytm can now bring in fresh merchants to its network of digital payments transactions, as long as it meets guidelines around responsibilities and compliances that comes with being an officially approved entity by RBI – a status that undertook two years+ for the fintech industry last mile reach.
Under these conditions RBI gave permission?
RBI has cleared Paytm with a few exceptions. The central bank asked PPSL to get the system audit and cyber security audit done. However, for this the report has to be submitted within six months. If these things do not happen, in-principle approval will get cancelled and final approval shall not be given. In addition to this, it is necessary for PPSL to take permission from RBI while altering in the shareholding, taking control or making transfer with the respect of the payment system operations.
What is up with Paytm Shares?
Paytm shares on Tuesday settled 0.31% lower at Rs 1,118.50 So far in June, Paytm shares have gained 14.75% At the same time, it also got 117 per cent return in last one year. But it is still way below the IPO price. In the last week, its high is Rs 1,136 and low is Rs 499.35; 52-week high is also Rs 1,136 and low is Rs 499.35.
Does this signal a return for Paytm? Paytm Breaking News
We have this news in addition to Paytm’s financially strong comeback. Paytm had posted a Rs 123 crore net profit in the quarter ended April-June 2025 (Q1 FY26) compared to a loss of Rs 839 crore in the corresponding quarter last year. It resulted in the company’s first operational quarterly profit since going public.
20% declination in a day?
RBI had in January 2024 put curbs on Paytm Payments Bank. A day later 1,2024, it hit a lower circuit and opened down by a huge of 20 per cent. Stock FT fell by Rs 152.20 to trade at Rs 608.80 per scrip. Followed by 6 months of Problems for the Business. But after this Paytm bounced back by keeping a tight leash on costs, offloading non-core businesses like Paytm Insider and resetting the merchant lending business.
Chinese money out of Paytm?
In addition, Chinese fintech firm Ant Financial has recently made a full exit from Paytm by selling its entire 5.84% stake for almost Rs 3,800 crore. Post- this, there will be no Chinese ownership in the company, a significant change in the shareholding pattern.
The company reports an operating revenue of Rs 1,918 crore for Paytm in the latest quarter, marking a growth of 28 percent and contribution profit growth of 52 percent increasing to Rs 1,151 crore with margin at >60%. Besides, Paytm’s stock is also trending higher.
