In a positive turn of events for paytm, the crisis it faced in recent days has seen some relief. The significant decline in the stock of Paytm's parent company, One 97 Communications, has halted, with the shares touching the upper circuit for the last three days. In the last three trading sessions, paytm shares have witnessed a continuous increase of 5 percent each day, resulting in a cumulative surge of over 15 percent.

The downward spiral in paytm shares was triggered by regulatory actions, notably the RBI's measures against paytm Payments Bank, leading to almost a 50 percent drop in the stock. However, recent developments have bolstered investor confidence. Reports of the RBI extending the deadline, a strategic agreement with Axis Bank, a positive rating from Bernstein, and, notably, no findings in the Enforcement Directorate (ED) probe over the last three days have contributed to the recovery.

Paytm shares closed at Rs 376.25 on Tuesday, with a 5 percent daily limit imposed after the significant decline. The extension of the RBI's deadline for closing deposits until march 15 provided relief, and media reports on monday suggested that the ED's investigation did not uncover any evidence against the company.

To address the crisis, One 97 Communications recently assigned its nodal account to Axis Bank, averting potential issues with its QR code, soundbox, and card machine. Paytm's founder and Managing Director, Vijay Shekhar Sharma, remained steadfast in defending the company during the challenging period. The positive developments have led to increased optimism, with brokerage firm Bernstein expressing hope that Paytm's shares could potentially reach Rs 600.