NPCI has extended support to Paytm amidst regulatory challenges faced by its payments bank. The approval of a third-party application provider license to One97 Communications Ltd, Paytm’s parent company, ensures that Paytm can continue offering payment services via UPI even after the impending closure of Paytm Payments Bank on March 15. This move comes as a relief for Paytm users, guaranteeing uninterrupted access to payment services.
To facilitate this transition, NPCI has enlisted Axis Bank, HDFC Bank, State Bank of India, and Yes Bank to provide payment system services to Paytm. Yes Bank will also serve as a merchant acquiring bank for both existing and new UPI merchants associated with Paytm. NPCI emphasized the importance of swiftly migrating existing handles and mandates to new payment system provider banks to ensure a seamless transition for users and merchants.
Despite recent hurdles, Paytm has maintained its position as the third-largest UPI payments app in India. In February, it processed 1.41 billion monthly transactions worth 1.65 trillion rupees, as per NPCI data, though experiencing a slight decline from January. NPCI’s action aligns with the RBI’s directive to review Paytm’s request to operate as a third-party application provider, reflecting concerted efforts to address regulatory concerns and uphold the smooth functioning of payment services in the country.
Post Your Comments