Paytm Shares: Parent company of Paytm, One97 Communications saw the stock rise 13% on Tuesday. This would be the best single-day gain the company had since February 8, 2023. It puts the stock in positive territory on a year-to-date basis as gains are up to 12% so far in 2024. The stock of Paytm has had volatile sessions with stocks losing over three consecutive days.
From Low to High- Paytm Shares Remarkable Recovery
The Paytm stock currently trades at ₹736.7 after a meaningful rebound from an all-time low of ₹310 into 2023 when the Reserve Bank of India had imposed restrictions on Paytm Payments Bank, which prevented the bank from accepting new deposits and conducting credit transactions-a move that attracted a massive sell-off and resulted in the skid of the stock. Still, shares of Paytm are down by 66% from the IPO price of ₹2,150 per share, which reflects the hardships since listing in 2021.
Market Sentiment and Technical Indicators
On the technical front, Paytm’s Relative Strength Index was at 61, which practically says that the company stock has entered the “overbought” zone. The investors are very much keeping their eyes locked onto the momentum of the stock as the spurt recently seen and the further price hike in it in the future can be seen.
Paytm’s Strategic Steps in RBI Restrictions
Paytm Payments Bank has developed major steps to ensure the continuance of service for its users by accepting the challenges posed by RBI’s restrictions. This permission was only received by Paytm from the National Payments Corporation of India (NPCI) regarding commencing migrations of users to the new Payment System Provider (PSP) bank handles. So, after the regulatory approval in March 2024 from NPCI, onboarding Paytm as a Third Party Application Provider (TPAP), it has rushed through partnerships with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are currently live under Paytm’s TPAP model.
This integration is also helping Paytm to shift its users, ensuring that UPI payments remain smooth and secure. By riding on the enormous structures of its banking partners, Paytm continues to provide uninterrupted payment services to users and merchants alike and has only enhanced its position in the competitive digital payments space. In this way, Paytm took steps to reduce RBI restrictions that may be causing a ripple effect in the ground and enhancing the user experience, getting poised for long-term growth.