Paytm, a leading Indian financial services firm, has received regulatory approval to resume adding new UPI payments users, following an eight-month Paytm has received regulatory approval to resume adding new UPI payments users,

India's Paytm said late on Tuesday it received approval from the country's payments authority to onboard new unified payment interface (UPI) users, providing some relief for the financial services firm after a central bank-ordered ban on its banking unit.

One97 Communications’ shares rose more than 12% intraday Wednesday, after the Paytm parent said it received clearance from the National Payments Corporation of India (NPCI) to restart onboarding of new customers for the Unified Payments Interface service.

Paytm's parent company, One97 Communications Ltd, has received approval from the National Payments Corporation of India (NPCI) to onboard new UPI users, following compliance with regulatory standards.

Paytm received NPCI approval for adding new UPI users which paves the way for re-accelerating its dwindling user base and further signaling an easing of regulatory stance, analysts said.

(Reuters) -Shares of Indian fintech firm Paytm jumped nearly 6% on Wednesday after the country's payments regulator allowed the company to sign new users for digital payments via UPI, which analysts said removed a key regulatory overhang.

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 70 million in the September-quarter from 100 million in the quarter before the clampdown.

The NPCI nod is expected to come as a relief to Paytm, which had suffered a blow following the Reserve Bank of India's restrictions earlier this year on associate company Paytm Payments Bank Limited (PPBL) in onboarding new UPI users on the Paytm app.