PayTM approved by NPCI for User Bank Migration

The National Payments Corporation of India (NPCI) has recently granted approval to One97 Communications Ltd., the parent company of Paytm, to operate as a Third-Party Application Provider (TPAP) for UPI transactions. This approval comes in the backdrop of regulatory challenges faced by Paytm Payments Bank Ltd (PPBL), including operational restrictions imposed by the Reserve Bank of India (RBI) due to non-compliance issues. The move allows for the migration of UPI services to a multi-bank model, ensuring the continuity of services for Paytm’s vast user base and reducing the concentration risk in the UPI system. Several banks, including YES Bank, Axis, HDFC, and SBI, will now act as Payment Service Provider (PSP) banks, facilitating seamless UPI transac