NPCI said that the nod will be contingent upon the fintech startup following all NPCI guidelines and circulars on risk management, brand guidelines, among others
It is pertinent to note that Paytm was hit by the Reserve Bank of India’s (RBI) restrictions on its payments bank arm in January this year
Subsequently, Paytm roped in Axis Bank, Yes Bank, SBI and HDFC Bank as its payment service provider (PSP) banks to offer UPI services
In a major development, fintech giant Paytm
said it has received the approval from the National Payments Corporation of India (NPCI) to onboard new unified payments interface (UPI) users.
In its approval letter to Paytm, the NPCI said that the nod will be contingent upon the fintech company following all guidelines and circulars on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP market share and customer data, among others.
“… We would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the Company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars,” the company said in the filing.
It is pertinent to note that Paytm was hit by the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank Limited (PPBL) in January this year. This effectively barred the company from onboarding any new UPI users on its platform as PPBL powered the fintech major’s entire UPI stack.
Subsequently, Paytm partnered Axis Bank, Yes Bank, SBI and HDFC Bank as its payment service provider (PSP) banks to offer UPI services.
The nod comes as a major breather for Paytm as it will allow the company to once again rope in new consumers and expand its user base. For context, Paytm, which accounted for a market share of 13% in terms of UPI transactions in January 2024, slipped to about 7% in September on account of curbs imposed by the RBI.
Despite the restrictions, Paytm accounted for more than 100 Cr transactions in September and is the third largest processor of UPI payments in the country.
Earlier today, the fintech major reported a consolidated profit after tax (PAT) of INR 930 Cr in the second quarter (Q2) of the fiscal year 2024-25 (FY25) compared to a loss of INR 292 Cr in the year-ago period. The profit came largely on the back of one-time exceptional gain of INR 1,345 Cr on account of sale of its entertainment ticketing business to Zomato.
Meanwhile, revenue from operations fell 34% year-on-year to INR 1,660 Cr in the quarter under review from INR 2,519 Cr in the year-ago period.
During the company’s post-earnings call, Paytm cofounder and CEO Vijay Shekhar Sharma said that the company’s first loss default guarantee (FLDG) approach would bolster its distribution-led merchant loan business.
Shares of Paytm ended 5.31% lower at INR 687.30 on the BSE on Tuesday (October 22).
