Paytm gets third-party UPI app license from NPCI as payments bank shuts down operations

Indian digital payments firm PaytmOfficially known as One 97 Communications, it was granted a third-party application provider license by the country’s payments authority on Thursday, allowing it to facilitate payments after its banking unit ceased operations. will enable to provide.

The license will allow users to continue using the Paytm app to make payments through India’s popular unified payment interface.UPI) after the Paytm Payment Bank Stops operations till March 15, following regulatory action due to non-compliance of certain norms.

Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider banks to Paytm, National Payments Corporation of India.NPCI) said in a statement.

Yes Bank will also act as merchant acquiring bank for Paytm for existing and new UPI merchants.

NPCI said Paytm has been advised to finalize new payment system provider banks for all existing handles and mandates, wherever required, as soon as possible.

UPI is India’s real-time payment system that allows users to transfer money across banks.

Paytm, the third-largest app for UPI payments in the country, processed 1.41 billion monthly transactions worth Rs 1.65 trillion in February, down from 1.57 billion transactions worth Rs 1.93 trillion in January, according to the NPCI website. According to the data.

PhonePe and Google Pay are two of the largest UPI payment apps in India.

Last month, the Reserve Bank of India (RBI) had asked the NPCI to examine Paytm’s application to become a third-party application provider.

Earlier this week, Reuters first reported that the NCPI is likely to approve a Third Party Application Provider (TPAP) license for Paytm.

© Thomson Reuters 2024

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