Paytm Receives NPCI Approval To Onboard New UPI Users

The Paytm update comes months after the Reserve Bank of India's regulatory freeze on UPI.

New Delhi: One 97 Communications Limited, which owns the Paytm brand, on Tuesday said that it has receivesd approval from The National Payments Corporation of India (NPCI) to onboard New UPI users.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the Company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars. A copy of the NPCI letter is enclosed for your reference," One 97 Communications Limited said in a regulatory filing.

The update comes months after the Reserve Bank of India's regulatory freeze. The Reserve Bank of India had in February this year said since the Paytm Payments Bank cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm Payments Bank, and minimise concentration risk in the UPI system by having multiple payment app providers. 

RBI said that the actions are undertaken in the sole interest of protecting the customers and payment system from any possible disruptions and are without any prejudice to the regulatory or supervisory actions initiated by RBI against Paytm Payments Bank.

However, 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, NCPI 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).