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SBI to partner with Paytm for its UPI business: Report
RBI imposed business restrictions on the payments bank, barring it from functioning beyond March 15.
The State Bank of India has reportedly partnered with Paytm parent organisation One97 Communications for its UPI payments as the Reserve Bank of India's (RBI) deadline for Paytm Payments Bank Limited (PPBL) looms. RBI imposed business restrictions on the payments bank, barring it from functioning beyond March 15. An Economic Times report claimed that “four banks – Yes Bank, Axis Bank, HDFC Bank and State Bank of India – will support Paytm’s consumer-facing UPI payments.”
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One of the bankers in the know said as per the report, “They will be issued fresh handles from the back-end and eventually customers will be migrated to each of the four banks in such a way that there is no extra pressure on any one entity."
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On February 20, Paytm shifted its nodal accounts to Axis Bank to settle UPI payments being made by consumers to its merchants via QR codes, the company said in a filing to the BSE.
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This would help merchants who accept digital payments through Paytm to continue doing so even after March 15.
The National Payments Corp of India (NPCI) is likely to approve a third-party application provider (TPAP) license for Paytm by March 15, news agency Reuters reported citing a source who said, “The (TPAP license) approval will come before March 15 and most of the checks have been completed. While the integration with banks may take more than a month, the license approval should be in place before the deadline ends.”
