Great News for Paytm: RBI Lifts Ban with a Small Condition!

The RBI lifting the ban on Paytm is a big win, with the condition of an audit to keep things safe. Shares are up, and the company looks set to grow. If you use Paytm or invest, this is good news to watch. Stay updated and get advice if needed!

What Ban Was Lifted?

The RBI had stopped Paytm Payments Services Limited (PPSL), a part of Paytm, from adding new online merchants for payment services. This ban was there because the company needed a final license to work as an online payment aggregator . Now, RBI has given PPSL the “in-principle approval” to start working again, but with one condition.

What’s the Condition?

RBI wants PPSL to do a detailed system audit, including a cybersecurity check. This audit must be done by experts approved by CERT-In, like Certified Information Systems Auditors (CISA) or DISA professionals. The audit will check if Paytm follows RBI’s rules on cyber safety and data storage. The report must be sent to RBI within six months, or the approval will end. Paytm also needs the RBI’s permission for any changes in its ownership.

Why Are Shares Jumping?

On August 13, 2025, Paytm’s shares opened at ₹1,167.90, up by 4.3% from the day before. In the last month, the share price has gone up by 15%, and in six months, it’s up by almost 50%. This excitement is because the ban lift removes a big worry for the company. Experts like Citi Group and Bernstein say this is good news and have set target prices of ₹1,215 and ₹1,100, respectively.

What Else Is Happening?

• Chinese Ownership Gone: The pressure from Antfin, a Chinese company, is over. Antfin sold all its shares in Paytm, just like Warren Buffett’s company did earlier.
• Future Growth: With the ban lifted, Paytm can now add more small merchants, which could increase its profits over time.

What Does This Mean?

• For Users: You can expect Paytm to keep growing and offer more payment options.
• For Investors: The share price might keep rising, but it’s still below its IPO price of ₹2,150. Some say “buy,” others say “hold”—it depends on your choice.
• For Paytm: This is a big step toward becoming stronger in the payment market.

Quick Questions Answered

1. Will this affect my Paytm app? No, your daily use should stay the same.
2. Is the audit a problem? It’s a safety check, and if Paytm passes, it will be fine.
3. Should I buy shares? Talk to a financial expert before deciding.

Disclaimer: The views and investment advice given by experts/brokerage firms on NewsPoint are their own and not those of the website and its management. NewsPoint advises users to consult certified experts before making any investment decision.