Paytm gets third-party app license from NPCI
New Delhi: Paytm, officially known as One 97 Communications, was granted a third-party application provider license by the Nation's Payments Authority of India (NPCI), media reports said.
The NPCI license granted today enables Paytm to facilitate payments once its banking unit stops operations, Reuters reported.
Following regulatory measures due to non-compliance with certain standards, Paytm Payments Bank is set to cease operations by March 15.
With this license, customers can continue using the Paytm app for payments via India's widely-used unified payment interface (UPI).
According to a statement by the National Payments Corporation of India (NPCI), Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will serve as payment system provider banks for Paytm.
Yes Bank will also act as a merchant acquiring bank for both existing and new UPI merchants associated with Paytm, it further stated.
Paytm has been instructed to swiftly complete the migration of all existing handles and mandates, where necessary, to new payment system provider banks, as per NPCI directives.
UPI, India's real-time payments system, facilitates seamless money transfers across various banks.
According to data available on the NPCI website, Paytm, the third-largest UPI payments app in the country, recorded 1.41 billion monthly transactions valued at 1.65 trillion rupees in February. This marked a decline from 1.57 billion transactions worth 1.93 trillion in January.
PhonePe and Google Pay hold the top positions as the two largest UPI payment apps in India.
Last month, the Reserve Bank of India (RBI) instructed NPCI to review Paytm's request to become a third-party application provider.
Earlier this week, Reuters reported that NPCI was likely to approve Paytm's request for a third-party application provider (TPAP) license.
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