Paytm gets approval from NPCI to become third-party UPI app

NPCI has granted approval to Paytm to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. Four banks -- Axis Bank, HDFC Bank, SBI, YES Bank -- will act as Payment System Provider to Paytm, National Payments Corporation of India (NPCI) said. One97 Communications Ltd (OCL) provides payment services under the Paytm brand.

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.

"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 (RBI) deadline asking customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.

(With inputs from PTI)

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