Paytm Secures NPCI Approval To become third-party UPI App with Major Banks By CIOTechOutlook Team

Paytm Secures NPCI Approval To become third-party UPI App with Major Banks

CIOTechOutlook Team | Friday, 15 March 2024, 05:29 IST

The National Payments Corporation of India (NPCI) has approved One97 Correspondences Limited (OCL), which works with the well-known fintech organization Paytm, to take part in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model.

"NPCI has today granted approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model," the payment infrastructure provider said in a statement.

As per the NPCI release, the four major banks, Axis Bank, HDFC Bank, State Bank of India, and YES Bank, will become PSP (Payment System Provider) banks to OCL.

"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," NPCI said in the release.

This action will empower present users and shippers to keep doing UPI exchanges and AutoPay orders consistently and uninterruptedly.

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

National Payments Corporation of India (NPCI) was consolidated in 2008 as a firm for working retail installments and settlement frameworks in India. NPCI is centered around developing retail installment frameworks using innovation and is constantly attempting to change India into a digital economy.

Shaktikanta Das, RBI Governor, said in the previous week that 80-85 percent of Paytm wallet clients won't confront any interruption due to administrative activities, and the remaining users have been encouraged to connect their applications to different banks.

In a significant activity against Paytm Installments Bank (PPBL), RBI, on January 31, guided it to quit taking deposits or top-ups in client accounts, wallets, FASTags and different instruments after February 29. In this way, the cutoff time was extended to March 15.