Some good news for Paytm App, The National Payments Corp of India (NPCI) has given Paytm, also known as One 97 Communications (OCL), the green light to join UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. This approval comes right before the March 15 deadline set by the Reserve Bank of India for Paytm Payments Bank.
Which 4 Banks Become Paytm Partner Banks?
Four banks have been given approval to work with OCL (One 97 Communications Limited), which is Paytm’s parent company. These banks are Axis Bank, HDFC Bank, State Bank of India, and YES Bank. They will act as Payment System Provider (PSP) banks for OCL.
Additionally, YES Bank will also handle merchant services for both existing and new UPI merchants linked with OCL or paytm. Users and merchants can continue to use UPI transactions and AutoPay through the “@Paytm” handle, which will now be managed by YES Bank.
NPCI Announcement Related To Paytm App?
The National Payments Corporation of India (NPCI) has given One97 Communications Ltd, the parent company of Paytm, permission to continue providing payment services through its app even after Paytm Payments Bank closes on March 15. This means customers can still use the Paytm app to make payments using Unified Payments Interface (UPI).
NPCI grants approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.@dilipasbe
— NPCI (@NPCI_NPCI) March 14, 2024
Read more here: https://t.co/XuJpyiiRNq
NPCI has appointed Axis Bank, HDFC Bank, State Bank of India, and Yes Bank to handle payment services for Paytm. Additionally, Yes Bank will also handle merchant services for both existing and new UPI merchants associated with Paytm.
What does Third Party Application Provider Means For Paytm?
A Third-Party Application Provider (TPAP) is a company that offers a mobile app or platform that lets people use UPI for making payments. This could be a mobile wallet app, a merchant’s app, or any other service that uses UPI for transactions.
The third-party application provider license enables Paytm App customers to keep using the Paytm app for payments via Unified Payment Interface (UPI), even after Paytm Payments Bank stops operating on March 15. UPI, managed by NPCI, allows users to transfer money between different banks.
Paytm, which is the third-largest UPI payments app in the country, handled 1.41 billion transactions totaling 1.65 trillion rupees ($19.94 billion) in February. This was slightly lower than January’s figures, which stood at 1.57 billion transactions worth 1.93 trillion rupees.
The RBI stopped Paytm Payments Bank (PPBL) from taking in new deposits and conducting credit transactions from February 29. This was extended to March 15. From March 15, PPBL cannot take any new deposits from customers. These restrictions were put in place because PPBL didn’t follow the rules set by the RBI.
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