Paytm Bags NPCI Approval for User Migration to New Payment System Provider Banks

Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank.

By ANI | Updated: 18 April 2024 14:28 IST

Paytm Bags NPCI Approval for User Migration to New Payment System Provider Banks

Photo Credit: Reuters

Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider banks to Paytm

Highlights

Paytm received third-party UPI app license from NPCI in March
All four banks are now operational on the TPAP
Paytm has started transitioning '@paytm' handles users to these banks

One 97 Communications Limited (OCL), which owns the brand Paytm, has received the nod from NPCI to start the user migration to new Payment System Provider (PSP) bank handles, the company informed the stock exchanges in a filing on Wednesday.

Following NPCI's approval on March 14, 2024 to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank, the company said in a press release.

"One 97 Communications Limited (OCL) that owns the brand Paytm, India's leading payments and financial services company and the pioneer of QR, soundbox and mobile payments, has received go ahead, yesterday from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles immediately," the release said.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.

The company has started transitioning '@paytm' handles users to these banks, ensuring seamless UPI payments, the release said.

"We are committed to grow the UPI ecosystem in partnership with NPCI to every nook and corner of India," a Paytm spokesperson said.

Paytm Gets Third-Party UPI App License as Banking Unit Halts Operation

Leveraging the robust infrastructure of its banking partners, Paytm ensures uninterrupted and secure UPI payments for both users and merchants through the Paytm app, the release said.

In its filing with stock exchanges, the company said that its communication is in continuation to earlier letter dated March 14, 2024, vide which "we had informed receipt of approval from the National Payment Corporation of India (NPCI) to the Company to participate in UPI as a Third-Party Application Provider (TPAP) under multibank mode".

Earlier on March 14, NPCI had given approval to One97 Communications Limited participating in UPI as TPAP under the multi-bank model.

This arrangement was done to enable existing users and merchants to continue to do UPI transactions and AutoPay mandates seamlessly and uninterruptedly.

National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organisation for operating retail payments and settlement systems in India.

5G is now available both on Android and iPhone in India. But is it any good? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.