NEW DELHI: Shares of One97 Communications, the owner of Paytm, hit upper circuit on Monday as they surged by 5% in morning trade. The stock rose to Rs 358.55 and Rs 358.35 apiece on the BSE and NSE, respectively.
Paytm’s recent deal with Axis bank for merchant payment settlements and RBI’s extension of deadline to March 15 to wind up operations of Paytm Payments Bank were the reason behind the rally.
Recently, One97 Communications shifted its nodal account to Axis Bank from Paytm Payments Bank. to ensure the continuity of Paytm’s services, such as Paytm QR, soundbox, and card machine.
RBI had instructed customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, thereby allowing PPBL to close most of its operations.
Paytm’s shares plummeted since RBI asked Paytm to suspend its Payments bank operations, after failing to comply with regulations despite repeated warnings.
PPBL after RBI’s order on January 31, ceased deposits, credit transactions, and top-ups in customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards after February 29.