Paytm Stock Hits the Highest Circuit Today; After RBI has directed NPCI to review the Fintech company’s application
On Friday, the Reserve Bank of India (RBI) asked the National Payment Council of India (NPCI) to look into the request of One97 Communications (OCL), Paytm’s parent company, to become a Third Party Application Provider (TPAP) . ) so that they can continue with the Unified Payments Interface operation of the Paytm application.
Mumbai: The Reserve Bank of India (RBI) on Friday asked the NPCI to review Paytm’s application to become a third-party app, following which Paytm Stock hit the market today.
Shares of One 97 Communication, Paytm’s parent company, rose 4.99 percent on the BSE today after the Reserve Bank of India (RBI) asked the NPCI to approve Paytm’s application for third party approval. are to be assessed. app, as indicated by Sea Business.
Paytm stock rose 4.99 percent, or Rs 20.35, to Rs 427.95 at 9:39 am on Monday.
The stock which closed at Rs 407.60 on Friday opened at Rs 416.90 on Monday and touched the day’s high of Rs 427.95.
On Friday, the Reserve Bank of India (RBI) asked the National Payment Council of India (NPCI) to look into the request of One97 Communications (OCL), Paytm’s parent company, to become a Third Party Application Provider (TPAP) . ) so that they can continue with the Unified Payments Interface operation of the Paytm application.
A TPAP approval is mandatory for any company conducting UPI-based payment transactions with customers. Currently, the Paytm app transactions are routed through Paytm Payments Bank (PPBL), an associate company of OCL, which is registered as TPAP.
What is a TPAP?
TPAP is a third party application provider that provides the UPI compliant app(s) to the end users to facilitate UPI based payment transactions. Apps like mobile wallets and merchant apps that use UPI for payments.
The UPI infrastructure is actually provided to the Trap by NPCI to work with payment service providers (PSPs) and banks to facilitate transactions. They must ensure that all these applications adhere to NPCI’s security standards and compliance guidelines.
RBI ban on Paytm Bank
Last month, the RBI banned Paytm Payments Bank from accepting deposits or recharges on customer accounts, prepaid instruments, wallets, FASTags and NCMC cards after February 29, 2024, following continued non-compliance. The deadline was later extended to March 15.
“For seamless migration of ‘@paytm’ to other banks, NPCI may facilitate certification of 4 to 5 banks as PSP banks with demonstrated capabilities to process high volume UPI transactions,” the RBI said.