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Paytm gets regulatory nod to become a third-party UPI app: What it means for you

Paytm third party app: For Paytm, four banks will act as partner banks- Payment System Provider (PSP)- in order to aid the payment service.

Updated on: Mar 14, 2024 11:05 PM IST
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Paytm third party app: National Payments Corporation of India (NPCI) granted approval to One97 Communications Limited (OCL), Paytm's parent entity, to participate in UPI services as a third-party application provider (TPAP). For Paytm, four banks will act as partner banks- Payment System Provider (PSP)- in order to aid the payment service.

Read more: Paytm Payments Bank closes on March 15: What will work and what won't, what about FASTags, UPI and wallet?

A QR code of Paytm is seen at a mobile repairing shop in Kolkata, India. (Reuters)
A QR code of Paytm is seen at a mobile repairing shop in Kolkata, India. (Reuters)

These banks are Axis Bank, HDFC Bank, State Bank of India, YES Bank.

Paytm third party app: What NPCI said?

"YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner," NPCI said in a statement.

Read more: Paytm Payments Bank deadline: Services you can use after March 15

The regulator also advised Paytm to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.

Paytm third party app: What it means for customers

This comes as a number of Paytm services will stop working after March 15 as the Reserve Bank of India (RBI) imposed restrictions imposed on Paytm Payments Bank Ltd (PPBL) citing persistent non-compliance and continued material supervisory concerns on January 31, 2024. After March 15, PBBL has been barred by RBI from accepting fresh deposits or top-ups.

 
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