Last Updated: March 14, 2024, 19:45 IST
The National Payments Corporation of India (NPCI) introduced on Thursday that it has granted One97 Communications Ltd, the proprietor of Paytm, a third-social gathering software supplier licence, enabling it to facilitate funds after its banking unit ceases operations.
With this licence, clients can nonetheless use the Paytm app to make funds by means of Unified Payments Interface (UPI) even after Paytm Payments Bank shuts down on March 15 due to regulatory points.
In a assertion, the NCPI mentioned that Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will function the banks offering fee system companies to Paytm. Additionally, Yes Bank will act as a service provider buying financial institution for each present and new UPI retailers for Paytm.
“YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” deal with shall be redirected to YES Bank. This will allow present customers and retailers to proceed to do UPI transactions and AutoPay mandates in a seamless and uninterrupted method,” the assertion learn.
NCPI path
The NCPI has additionally adviced Paytm to full the migration for all present handles and mandates, wherever required, to new fee system supplier banks on the earliest.
UPI, owned and operated by NCPI, permits customers to switch cash throughout banks.
Paytm, rating because the third-largest UPI funds app within the nation, processed 1.41 billion month-to-month transactions value 1.65 trillion rupees in February. This was a slight lower from 1.57 billion transactions value 1.93 trillion rupees in January, in accordance to NPCI knowledge.
PhonePe and Google Pay maintain the highest positions as the 2 largest UPI fee apps in India.
Last month, the Reserve Bank of India (RBI) directed the NPCI to evaluation a request from Paytm to turn into a third-social gathering software supplier.
(With inputs from Reuters)
