The National Payment Corporation of India (NPCI) has given permission to Paytm’s parent company, One97 Communications Limited, to be a third-party app provider in UPI under the multi-bank model.
Four banks, including Axis Bank, HDFC Bank, State Bank of India, and Yes Bank, are now able to help One97 Communications Limited with payments.
NPCI (National Payments Corporation of India) released a statement on March 14, 2024, announcing that NPCI allowed Paytm’s parent company, One97 Communications Limited, to join UPI as a third-party app provider under the multi-bank model.
NPCI mentioned that four banks – Axis Bank, HDFC Bank, SBI, and Yes Bank – will assist One97 Communications Limited with payments.
NPCI grants approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.@dilipasbe
Read more here: https://t.co/XuJpyiiRNq
— NPCI (@NPCI_NPCI) March 14, 2024
Yes Bank will help One97 Communications Limited with new and existing UPI merchant services.
@Paytm users will now be directed to Yes Bank. This decision by NPCI means that current users and merchants can keep using UPI for transactions and autopay without any issues.
NPCI has suggested that One97 Communications Limited should move all current accounts and agreements to the new Payments Service Provider banks as quickly as they can.
Additionally, starting March 15, 2024, Paytm Payments Bank is prohibited from accepting new deposits and offering banking services as per the Reserve Bank of India’s directive.
One97 Communications Limited owns a 49% stake in Paytm Payments Bank and has moved its nodal accounts to Axis Bank on February 17 to ensure smooth merchant payments.
