Paytm gains 2% on starting customer migration to PSP banks

Shares of Paytm gained 2 percent at the open on the NSE on April 18, a day after One 97 Communications Limited, which owns the brand Paytm, announced that it had received the go-ahead to migrate users to the new Payment System Provider (PSP) bank. At 9:20am, the stock was trading at Rs 399.10.

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In a filing on the NSE, Paytm said that it has started the customer migration to partner payment service provider (PSP) banks – Axis Bank, HDFC Bank, SBI and Yes Bank in place of Paytm Payments Bank Limited (PPBL). This move comes after NPCIs approval on March 14.

On January 31, 2024, the Reserve Bank of India (RBI) had imposed major business restrictions on Paytm Payments Bank, barring it from accepting fresh deposits and doing credit transactions after February 29 because of “persistent non-compliance and continued material supervisory concerns in the bank”. Following this, on March 11, the RBI barred Paytm Payments Bank from onboarding new customers.

Also read: Paytm starts migrating customers to new UPI IDs

As a result of the RBI actions, Paytm’s unified payments interface (UPI) market share drop to nine percent in March as per data from NCPI (National Payments Corporation of India). This is the lowest level in the last four years.

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