Paytm adds 2% as users begin switching to PSP banks
In lieu of Paytm Payments Bank Limited, Paytm has begun migrating its client base to partner payment service provider (PSP) banks, including Axis Bank, HDFC Bank, SBI, and Yes Bank.
According to statistics from NCPI (National Payments Corporation of India), Paytm's universal payments interface (UPI) market share dropped to 9% in March as a consequence of the RBI's activities. In the previous four years, this is the lowest level.
A day after One 97 Communications Limited, the company that controls the Paytm brand, said that it had been given the all-clear to move customers to the new Payment System Provider (PSP) bank, Paytm shares opened on the NSE up 2%. The stock was trading at Rs 399.10 at 9:20 a.m.
Paytm said in a filing with the NSE that it has begun the process of moving its users from Paytm Payments Bank Limited (PPBL) to partner payment service provider (PSP) banks, including Axis Bank, HDFC Bank, SBI, and Yes Bank. This action follows the March 14 approval of NPCI.
The Reserve Bank of India (RBI) placed significant business restrictions on Paytm Payments Bank on January 31, 2024. The restrictions prevent the bank from taking on new deposits or completing credit transactions after February 29 due to "persistent non-compliance and continued material supervisory concerns in the bank." The RBI then prohibited Paytm Payments Bank from accepting new clients on March 11.
According to statistics from NCPI (National Payments Corporation of India), Paytm's universal payments interface (UPI) market share dropped to 9% in March as a consequence of the RBI's activities. In the previous four years, this is the lowest level.
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