Paytm: The National Payments Corporation of India (NPCI) has granted One97 Communications Limited (OCL), the parent company of Paytm, the green light to function as a third-party application provider (TPAP) for Unified Payment Interface (UPI) services. This approval is crucial for Paytm, especially as it navigates through regulatory challenges imposed by the Reserve Bank of India (RBI).
Paytm Secures NPCI Nod for UPI Services with New Banking Partners
Under this new arrangement, Paytm will collaborate with four banks, designated as Payment System Provider (PSP) banks, to support its UPI payment services. Among these, YES Bank has been specifically chosen to act as the merchant acquiring bank for both existing and new UPI merchants associated with OCL. Consequently, the “@Paytm” UPI handle will be transferred to YES Bank, ensuring that both users and merchants can continue their UPI transactions and AutoPay mandates smoothly without interruptions.
NPCI’s statement also emphasized the importance of Paytm
The NPCI’s statement also emphasized the importance of Paytm completing the migration process for all existing UPI handles and mandates to the new PSP banks promptly to avoid any service disruptions.
This development comes at a pivotal time for Paytm, following the RBI’s decision to impose restrictions on Paytm Payments Bank Ltd (PPBL) due to “persistent non-compliance and continued material supervisory concerns.” As of March 15, PPBL is prohibited from accepting any new deposits or account top-ups.
For customers, Paytm’s approval to offer UPI services through additional banking partners means that they can continue using the Paytm app for their UPI transactions seamlessly. This move not only ensures service continuity for existing users but also reinforces the ecosystem for digital payments in India.
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