Indian digital funds agency Paytm, formally identified as One 97 Communications, was on Thursday granted a third-party utility supplier license by the nation’s funds authority, which can allow it to facilitate funds after its banking unit ceases operations.
The license will enable clients to proceed utilizing the Paytm app for funds by way of India’s standard unified cost interface (UPI), after Paytm Payments Bank ceases operations by March 15, following regulatory motion on account of non-compliance with sure norms.
Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as cost system supplier banks to Paytm, the National Payments Corporation of India (NPCI) mentioned in a press release.
Yes Bank shall additionally act as a service provider buying financial institution for current and new UPI retailers for Paytm, it added.
Paytm has been suggested to finish the migration for all current handles and mandates, wherever required, to new cost system supplier banks on the earliest, the NPCI mentioned.
UPI is India’s real-time funds system that permits customers to switch cash throughout banks.
Paytm, the third-largest app for UPI funds within the nation, processed 1.41 billion month-to-month transactions price 1.65 trillion rupees in February, down from 1.57 billion transactions price 1.93 trillion in January, based on information on the NPCI web site.
PhonePe and Google Pay are the 2 largest UPI cost apps in India.
Last month, the Reserve Bank of India (RBI) had requested the NPCI to look at a request from Paytm to develop into a third-party utility supplier.
Early this week, Reuters was the primary to report that the NCPI was prone to approve a third-party utility supplier (TPAP) license for Paytm.
© Thomson Reuters 2024
