In a significant development, Paytm, India's leading financial services firm, has received regulatory approval to resume adding new users to its Unified Payments Interface (UPI) payments platform. This move comes after an eight-month restriction imposed by the Reserve Bank of India (RBI) due to repeated violations of rules at its affiliate payments bank.

The approval is a much-needed boost for Paytm, which has seen its market share in UPI transactions shrink to 8% from 13% earlier this year. The company's monthly transacting users have also fallen to 68 million from 100 million in December. With this clearance, Paytm is expected to revive its user growth, a crucial aspect for the company's revenue expansion.

In its quarterly earnings report, Paytm posted revenue of $197.4 million, up from $178.6 million in the previous quarter, but down 34% year-on-year from $299.5 million. The company's profit climbed to $110 million, aided by a one-time gain of $160 million from the sale of its entertainment ticketing business to Zomato.

This development is significant for the tech and startup community, as it marks a revival of Paytm's growth prospects in the competitive Indian digital payments landscape, dominated by Walmart-owned PhonePe and Google Pay.