One 97 Communications, the parent company of Paytm, has received approval from the National Payments Corporation of India (NPCI) to onboard new UPI users. This approval comes after a ban on adding new customers was imposed by the Reserve Bank of India nearly nine months ago.

The approval is expected to boost UPI transaction volumes for Paytm. In the second quarter of FY25, Paytm reported a net profit of ₹930 crore, a significant improvement from a net loss of ₹290 crore in the same quarter last year. However, the profit was mainly driven by a one-time gain of ₹1,345 crore from the divestiture of its movie ticketing business to Zomato. Excluding this gain, the company would have reported a net loss of ₹415 crore, surpassing the loss recorded in the previous year.

Despite these developments, Paytm's stock has only risen by approximately 5% this year, which is lower than the 12% return of the Nifty index during the same period. Brokerages have expressed mixed views on the company's quarterly performance, indicating a cautious outlook due to recent changes in user onboarding policies.