Shares of One97 Communications Ltd, the parent company of Paytm, saw a sharp rise in early trade today. The stock price gained over 5% after the Reserve Bank of India (RBI) gave an important approval to its subsidiary, Paytm Payments Services Ltd (PPSL).
This approval allows PPSL to operate as an online payment aggregator. It also ends the freeze on onboarding new merchants, which had been in place for a long time. The market responded quickly to the news. Many traders and investors bought the stock, pushing it to a fresh 52-week high.Price Movement in the Market
Paytm’s share price opened strong and moved up rapidly. In early trading, the stock hit a high of around ₹1,186 to ₹1,187 on the NSE and BSE. This was an increase of almost 6% from the previous close of ₹1,120. By 11:00 AM IST, the price was hovering near ₹1,161.50, still up about 3.7%.
Market experts noted that this was the highest level for Paytm shares since January 2022. The RBI decision has been viewed as a major positive for the company’s business outlook.RBI’s In-Principle Approval
The RBI granted an “in-principle authorisation” to PPSL. This means the company can now resume onboarding new merchants for its payment services. Earlier, the RBI had stopped PPSL from adding new merchants due to compliance issues.
This ban had hurt Paytm’s payment business growth. Now, with the freeze lifted, the company is expected to expand its merchant network again. This will likely boost transaction volumes and revenue in the coming months.Investor Sentiment
Investors reacted positively to the news. The payment aggregator licence is crucial for Paytm because it ensures business continuity in one of its main revenue segments. Analysts believe that the approval could also improve Paytm’s relationship with banking partners and merchants.
Some market analysts have even revised their short-term price targets for Paytm, expecting further upside if the company executes its growth plans effectively.Broader Market Context
The rise in Paytm shares also came on a day when Indian equity markets were trading higher. The Nifty 50 was up 0.5% at 24,602.9, while the BSE Sensex gained 0.38% to reach 80,526.94.
Mid-cap and small-cap indices also moved up by 0.6–0.8%. Paytm was among the top gainers in the large-cap segment. The combination of positive company news and a strong market trend helped boost its price further.Why This Matters
Paytm has been working to regain investor trust after facing regulatory challenges in recent years. The payment aggregator licence marks a significant step forward. It clears a major hurdle for the company and gives it the opportunity to grow its payment business again.
The development also sends a positive message to the fintech sector. It shows that regulatory approvals, though sometimes delayed, are possible if companies work to meet compliance requirements.
For Paytm, the next steps will be to scale up merchant onboarding, improve transaction security, and strengthen partnerships with banks. If the company can achieve these goals, it may see continued share price momentum in the near future.
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