Why Paytm shares hit 5% upper circuit today?

The stock opened at ₹370.70, reflecting a gain of 5% to hit upper circuit. On Thursday, Paytm shares closed at ₹353.05 per unit.

In a statement, NPCI said that OCL has been granted a Third-Party Application Provider (TPAP) under the multi-bank model. HDFC Bank, State Bank of India, Axis Bank, and YES Bank are the payment system provider (PSP) banks.

With this new licence, the Paytm app will continue to support payments through UPI, even after Paytm Payments Bank shuts down on March 15 due to non-compliance with regulatory norms.

"This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner. OCL has been advised to complete the migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest," the NPCI, the umbrella body for operating retail payments and settlement systems in India, said.

According to data on the NPCI website, Paytm processed 1.41 billion monthly transactions worth ₹1.65 trillion in February. In January, the app had processed 1.57 billion transactions worth ₹1.93 trillion.

Paytm is India's third-largest UPI application after PhonePe and Google Pay.