NEW DELHI: The National Payments Corporation of India on Thursday granted approval to Paytm-owner One97 Communications Ltd (OCL) to participate in UPI as a third-party application provider (TPAP) under the multi-bank model.
The licence will allow Paytm’s customers to continue using its app for payments through India’s popular unified payment interface (UPI) after its banking arm Paytm Payments Bank Ltd (PPBL) had been asked by the RBI to cease operations by March 15 over non-compliance with certain norms.
According to NPCI, four banks, namely Axis Bank, HDFC Bank, State Bank of India and YES Bank, shall act as PSP (payment system provider) banks to the OCL.
YES Bank shall act as the merchant acquiring bank for the UPI merchants for the OCL. The OCL has also been advised to complete the migration for all existing handles and mandates to new PSP banks.