NPCI has advised Paytm to complete the migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.
Digital Desk: The parent company of Paytm, One97 Communications Limited (OCL), has been permitted by the National Payments Corporation of India (NPCI) to engage in UPI services as a Third-Party Application Provider (TPAP) under the multi-bank model.
To enable the Paytm payment service, four banks, Axis Bank, HDFC Bank, State Bank of India, and YES Bank, will function as partner banks, or Payment System Providers (PSPs).
"YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner," NPCI said in a statement.
Further, the NPCI has advised Paytm to complete the migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.
Paytm took to ‘X’, “Now, officially your Paytm UPI will work! We have received approval from @NPCI_NPCI to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.”
To ensure that Paytm may continue to process payments over the unified payments interface (UPI), the Reserve Bank of India had requested in February that NPCI investigate a request made by One97 Communication Ltd., the parent firm of Paytm, to become a third-party application provider.
Paytm Payments Bank Ltd (PPBL), a Paytm partner, was instructed by the regulator on January 31 to cease most of its operations by March 15 due to ongoing non-compliance and supervisory concerns. Because the Paytm app used the bank as its nodal account, the relocation had an impact on how it operated. Later on, Paytm moved its nodal account to Axis Bank.
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