Paytm Shares Rally 9% Post CEO's Meeting with FM Nirmala Sitharaman and RBI

In a notable rebound, Paytm's parent company, One97 Communications, witnessed a surge of nine percent in its stock, providing a sigh of relief to investors. This uptick followed a crucial meeting between Paytm's founder, Vijay Shekhar Sharma, and both the Reserve Bank of India (RBI) and Finance Minister Nirmala Sitharaman.

As of early trade at 9:43 am, Paytm's stock was trading at ₹492.45, reflecting a 9.05 percent increase from the previous day's close. The shares had opened at ₹461.30, surpassing the prior day's closing value of ₹451.60.

This surge comes on the heels of a recovery on Tuesday when Paytm shares rebounded after three consecutive days of significant declines. Despite a weak opening, the stock soared by 7.79 percent to ₹472.50 on the Sensex and closed at ₹451.60, showcasing a gain of 3.02 percent. On the NSE, Paytm shares climbed 7.99 percent to ₹473.55 during the day and ended at ₹452.80, marking a 3.26 percent increase.

The positive movement in Paytm's stock follows the Reserve Bank of India's decision not to grant any concessions to the fintech firm concerning the Payments Bank. This includes the migration of accounts to other banks or extending the February 29 deadline. The central bank's refusal poses a challenge for Paytm, requiring the migration of Payments Bank accounts to third-party banks before the deadline to ensure the smooth functioning of the payments interface.