Paytm gets NPCI approval to participate in UPI under multi-bank model

Axis Bank, HDFC Bank, State Bank of India, and YES Bank will act as Payment System Provider (PSP) banks to Paytm.

Mumbai: The National Payments Corporation of India on Thursday granted approval to Paytm-owner One97 Communications Ltd to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model

Axis Bank, HDFC Bank, State Bank of India, and YES Bank will act as Payment System Provider (PSP) banks to Paytm.

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YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for One97 Communications Ltd (OCL). “@Paytm” handle shall be redirected to YES Bank, NPCI said in a statement.

OCL provides payment services under the Paytm brand.

“This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” it said.

Paytm has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.

The NPCI’s decision comes a day ahead of the Reserve Bank deadline asking customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.