Paytm gets regulatory nod to become a third-party UPI app: What it means for you
Paytm third party app: National Payments Corporation of India (NPCI) granted approval to One97 Communications Limited (OCL), Paytm’s parent entity, to participate in UPI services as a third-party application provider (TPAP). For Paytm, four banks will act as partner banks- Payment System Provider (PSP)- in order to aid the payment service.
These banks are Axis Bank, HDFC Bank, State Bank of India, YES Bank.
“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.
The regulator also advised Paytm to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.
The nod means you can use Paytm app for payments through unified payment interface.
This comes as a number of Paytm services will stop working after March 15 as the Reserve Bank of India (RBI) imposed restrictions imposed on Paytm Payments Bank Ltd (PPBL) citing persistent non-compliance and continued material supervisory concerns on January 31, 2024. After March 15, PBBL has been barred by RBI from accepting fresh deposits or top-ups.
