Paytm shares gain for third session in a row; find out why

Shares of One97 Communications, the parent company of Paytm, continued their upward trajectory for the third consecutive session on Tuesday, reaching a day's high of 409 rupees on the NSE.

This surge in share price can be attributed largely to the recent approval granted by the National Payments Corporation of India or NPCI for Paytm to provide UPI payment services as a third party app.

Following this development, the stock has received thumbs up from brokerages such as Morgan Stanley and Yes Securities.

Paytm gets five handles to continue UPI transactions, existing one to continue

Fintech firm One97 Communications, owner of the Paytm brand, has got five handles in partnership with four banks to continue UPI transactions, as per an update on the NPCI website.

The company's existing handle @paytm is among the five handles that users can continue using without the need to make any changes at their end.

National Payments Corporation of India (NPCI) has approved @paytm and a closed user group UPI handle @ptyes for Paytm in partnership with Yes Bank.

NPCI has also approved @pthdfc with HDFC bank and @ptsbi with State Bank of India as a partner. However, these two handles are not active immediately.

Paytm spokesperson said users can continue to use @paytm handle seamlessly without the need to make any changes at their end.

On March 14, NPCI approved a third party application (TPAP) provider permit for Paytm in collaboration with SBI, Axis Bank, Yes Bank and HDFC bank for continuity of UPI transactions for the company's users.

Paytm's UPI transactions were earlier being carried out through Paytm Payments Bank (PPBL) that has been barred by the Reserve Bank of India from accepting deposits, credit transactions, or top-ups in any customer accounts after March 15.

One97 Communications Limited (OCL) holds a 49 per cent stake in PPBL, while company's Founder and CEO Vijay Shekhar Sharma holds 51 per cent stake in the beleaguered bank.