Paytm Share Price Hits 52-Week High After RBI Clears Online Payment Aggregator Licence

Shares of One97 Communications Ltd., the parent company of Paytm opened strong on Wednesday, August 13, touching a new 52-week high of ₹1,167.9, after the RBI granted in-principle authorisation to its wholly owned subsidiary PPSL to operate as an Online Payment Aggregator. The development marks a significant regulatory milestone for the fintech giant.

RBI Lifts Ban, But Sets Six-Month Compliance Deadline

The RBI has also lifted merchant onboarding restrictions that had been in place since November 2022, allowing PPSL to once again bring new online merchants onto its platform.

However, the approval comes with conditions PPSL must conduct a comprehensive system audit, including a cybersecurity review, and submit the report to the RBI within 6 months.

Failure to do so will lead to the lapse of the authorisation, and final approval will not be granted.

Past Ban Impact Minimal; Foreign Stake Exit Clears Overhang

When the onboarding ban was first imposed, Paytm management had indicated that it would have no material impact on business, as it only restricted the addition of new online merchants, not existing operations.

The regulatory clearance comes shortly after Paytm’s “Chinese overhang” was removed, with Antfin selling its remaining stake in the company through block deals, at a loss similar to Warren Buffett’s Berkshire Hathaway, which had also exited earlier, as per news reports.

Market Performance

Paytm’s stock rose 4.3% in early trade on Wednesday, building on its strong recent momentum. The scrip has gained 15% over the past month and nearly 50% in the last 6 months. Despite the rally, the stock still trades below its IPO price of ₹2,150.

Read More: Antfin Fully Exits Paytm with ₹15,700 Cr Loss.

Conclusion

The RBI’s green light for PPSL’s payment aggregator operations is a boost for Paytm’s growth prospects and market sentiment. While the conditional nature of the approval requires compliance within a six month window, the lifting of onboarding restrictions positions Paytm to scale its merchant network once again.

Investors will now watch the company’s execution on the mandated audits and its ability to sustain the strong upward momentum in its share price.

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