SUMMARY
Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will act as payment system provider banks to One97 Communications, the parent of Paytm
The licence will allow the fintech giant to operate UPI services under a multi-bank model
The nod from the NPCI comes just a day before the deadline for the RBI’s curbs on Paytm Payments Bank kicks in
A day before the Reserve Bank of India’s (RBI) deadline for curbs on Paytm Payments Bank Ltd (PPBL) kicks in, One97 Communications Ltd, the parent of Paytm, has secured the Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI).
With the licence, the fintech major can operate UPI services under a multi-bank model. Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will act as payment system provider (PSP) banks to One 97 Communications.
“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,” the NPCI said in a statement.
The payments body said it has advised One97 Communications to complete migration of all existing handles and mandates, wherever required, to new PSP banks at the earliest.
(The story will be updated soon.)
