According to Paytm’s filings on the exchange, it got permission from the National Payments Corporation of India (NPCI) to take part in UPI via Third-Party Application Provider (TPAP) under the multibank model. NPCI stated that the four banks - HDFC Bank, State Bank of India, Axis Bank and Yes Bank - will act as Payment System Providers (PSP). As per the agency, Yes Bank will also work as a merchant acquiring bank for existing and new UPI merchants for OCL and the @Paytm handle shall be redirected to Yes Bank. After this move, Paytm users and merchants will continue to use UPI services such as autopay mandates.
An immediate migration is advised by the OCL (Paytm-parent One 97 Communications) for all its existing handles and mandates, wherever required, to new PSP banks as soon as possible. The statement comes weeks after the Central Bank reported a set of several steps as a follow-up to its actions against Paytm Payments Bank. An advisory to NPCI to consider OCL’s request to become a TPAP for the UPI channel is also included in these steps.
Recently, an inter-company agreement between the organisation and Paytm Payments Bank Limited (PPBL), was discontinued by Paytm. The company said, ‘“This move helps in the independent operations of PPBL”. Earlier, Vijay Sharma also resigned from his job role as part-time non-executive chairman and board member of PPBL. The firm also stated the reconstitution of its board of directors and aims to appoint a new chairman soon.
Thought of YFS on Paytm’s NPCI Nod for UPI
Some relief at last for the beleaguered fintech giant. The discontinuation of Paytm Payments Bank’s core banking services by the RBI directive a month ago was a shocker not only for the company but also for its millions of customers. That drew confusion and chaos among these customers. Even Paytm had to bring in a lot of campaigns saying that its UPI services will continue to work beyond Feb 29, 2024. Now with that third-party application provider nod gained by the fintech giant for UPI services, things look brighter for the company as well as its customers. Hope Paytm will soon get back its sheen, reckons Your First Startup (YFS).