Paytm share price hits upper circuit again today. What's driving the rally?

Paytm share price today continued its recovery. The stock has gained 5 per cent, hitting the upper circuit for the second straight session today. This comes on the news that the crisis-hit company has partnered with Axis Bank for the settlement of merchant payments. At 11:56 am, the stock was trading at ₹358.35 on the NSE.

In the previous session, Paytm shares rose 5% to the upper circuit at ₹341.30 on the NSE. In one month, the stock has tanked 55 per cent.

Read more: How to deactivate Paytm FASTag and buy new one online: Step by step guide

Paytm share price: Axis Bank decision

Paytm's parent company- One97 Communications- shifted its nodal account to Axis Bank through an escrow account. The company said that it will continue to operate for all its merchant partners as well.

Read more: Do men spend more time on e-shopping than women? What are major cities buying?

Paytm share price: RBI deadline

The Reserve Bank of India (RBI) extended the deadline to halt operations and for Paytm Payments Bank account holders to move their assets till March 15. Additionally, it also issued a list of frequently asked questions (FAQs) for all Paytm Payments Bank account holders which include clarifications regarding remaining balance, UPI payments and FASTags.

Read more: No FEMA violation found by ED in Paytm Payments Bank case: Report

The RBI said in its order, “No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime."