A few days ago, the National Payments Corporation of India ordered Paytm Payments Bank to cease operations after March 15 due to non-compliance with certain norms. However, on Thursday, Paytm was granted a third party app provider license for UPI payments, meaning that Paytm, like other UPI apps in India, will now be able to offer UPI services.
According to NPCI, Paytm has already signed agreements with four major banks like State Bank of India, Axis Bank, HDFC Bank and Yes Bank. And each of them will continue to work as a payment service provider for One97 Communications i.e. Paytm.
Earlier Paytm’s UPI ID used @Paytm at the end, but now users have to use @Yesbank instead. And through this, Paytm’s existing customers and merchants will be able to make financial transactions using the UPI service as before. It may be noted that the Reserve Bank of India tasked NPCI to review the matter after Paytm requested a third-party application provider license in February.
Currently, NPCI has advised Paytm to hand over all necessary information to the banks offering the new payment system. Also, NCPI reported that Paytm had monthly transactions of Rs 1.41 billion in February. This is much less than January’s 157 billion monthly transactions.
Earlier Paytm Payments Bank Limited (PPBL) held the third party application provider license. As a result, Paytm did not require a TPAP license like rival apps like Google Pay, Phone Pay, Cred and Amazon Pay. But now that Paytm has stopped all business activities with Paytm Payments Bank, they now need a third party application provider license like the rest.
