The National Payments Corporation of India (NPCI) has given the green light to One97 Communications Limited (OCL), the parent company of Paytm, allowing it to join the UPI services as a Third-Party Application Provider (TPAP) within the multi-bank model.
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
The long-awaited license will enable Paytm to maintain its Unified Payments Interface (UPI) services for its application users, especially following the closure of its banking unit, Paytm Payment Bank Limited (PPBL), after March 15th.
In the past, the fintech operated this service through PPBL, which possessed the TPAP license. Moreover, Yes Bank will serve as the merchant acquiring bank for both existing and new UPI merchants associated with Paytm.
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Paytm’s payment service will be powered by four partner banks—Axis Bank, HDFC Bank, State Bank of India, and YES Bank—acting as Payment System Providers (PSP) to facilitate the process.
NPCI has stated that YES Bank will serve as the merchant acquiring bank for both existing and new UPI merchants associated with OCL. The “@Paytm” handle will be redirected to YES Bank, ensuring that existing users and merchants can carry out UPI transactions and AutoPay mandates smoothly without any interruptions.
Additionally, the NPCI has instructed Paytm to swiftly migrate all existing handles and mandates, as necessary, to the new Payment System Provider (PSP) banks without delay.
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