Big Relief To Paytm, Gets NPCI Approval As A Third-Party UPI App

This transition is crucial for ensuring the smooth functioning of Paytm's UPI services under the multi-bank model.

Image Credit: Reuters

New Delhi: The National Payments Corporation of India on Thursday granted approval to Paytm-owner One97 Communications Ltd to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. Axis Bank, HDFC Bank, State Bank of India, and YES Bank will act as Payment System Provider (PSP) banks to Paytm.

YES Bank shall also be acting as a merchant acquiring bank for existing and new UPI merchants for One97 Communications Ltd (OCL).

“@Paytm” handle shall be redirected to YES Bank, NPCI said in a statement.OCL provides payment services under the Paytm brand."This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner," it said.

NPCI grants approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.@dilipasbe

Read more here: https://t.co/XuJpyiiRNq

— NPCI (@NPCI_NPCI) March 14, 2024

Paytm has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.

The NPCI's decision comes a day ahead of the Reserve Bank deadline asking customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.