<p>Shares of <a href="https://www.deccanherald.com/tags/paytm">Paytm</a> rose 5 per cent on Wednesday after India's payments regulator said the fintech company could <a href="https://www.deccanherald.com/business/companies/paytm-gets-npci-nod-to-onboard-new-upi-users-3244209">sign new users</a> for its key digital payments business, removing a key overhang since a central bank-ordered ban on its banking unit.</p><p>The country's financial regulator wound down Paytm's banking unit in January due to persistent compliance issues, which pulled down its monthly transacting users (MTU) to 7 crore in the September quarter from 10 crore in the quarter before the clampdown.</p><p>The National Payments Corporation of India (NPCI) granted its approval following a request by the company in August, Paytm said on Tuesday.</p><p>"With NPCI approving new client onboarding, the path to the MTU revival is greatly cleared," said Rahul Jain, vice president of research at Dolat Capital.</p><p>Up to Tuesday's close, Paytm shares had lost around 10 per cent since the central bank clampdown on Jan. 31.</p><p>That included a 5 per cent drop on Tuesday after Paytm's second-quarter results showed it barely slowed its revenue decline as its digital payments user base dwindled.</p>
<p>Shares of <a href="https://www.deccanherald.com/tags/paytm">Paytm</a> rose 5 per cent on Wednesday after India's payments regulator said the fintech company could <a href="https://www.deccanherald.com/business/companies/paytm-gets-npci-nod-to-onboard-new-upi-users-3244209">sign new users</a> for its key digital payments business, removing a key overhang since a central bank-ordered ban on its banking unit.</p><p>The country's financial regulator wound down Paytm's banking unit in January due to persistent compliance issues, which pulled down its monthly transacting users (MTU) to 7 crore in the September quarter from 10 crore in the quarter before the clampdown.</p><p>The National Payments Corporation of India (NPCI) granted its approval following a request by the company in August, Paytm said on Tuesday.</p><p>"With NPCI approving new client onboarding, the path to the MTU revival is greatly cleared," said Rahul Jain, vice president of research at Dolat Capital.</p><p>Up to Tuesday's close, Paytm shares had lost around 10 per cent since the central bank clampdown on Jan. 31.</p><p>That included a 5 per cent drop on Tuesday after Paytm's second-quarter results showed it barely slowed its revenue decline as its digital payments user base dwindled.</p>