Paytm gets 5 handles to continue its UPI transactions; NPCI approves third party app license
According to the NPCI website, One97 Communications, Paytm’s parent company, in partnership with four banks, has five handles to continue UPI transactions.
Paytm Payments Bank will cease operations by March 15, as now ordered by the RBI India’s National Payments Corporation of India (NPCI) has approved a third-party app license for Paytm, allowing business users to access UPI even after March 15.
According to the NPCI website, One97 Communications, Paytm’s parent company, in partnership with four banks, has five handles to continue UPI transactions.
NPCI on Paytm
NPCI approved @paytm and UPI processes @ptyes for Paytm in association with Yes Bank. @pthdfc with HDFC bank and @ptsbi with State Bank of India as partners, but these two handles are not immediately active, Business Standard reported.
In addition to these handles, the company’s existing handle @paytm is also among the five handles that paytm users can continue to use from now on.
Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as partner banks for Paytm, as announced by the National Payments Corporation of India (NPCI) in a statement.
Paytm has been advised to complete migration for all existing handles and mandates, where necessary, to new banks offering payment systems at the earliest, the NPCI said.
Paytm previously conducted all UPI transactions through Paytm Payments Bank (PPBL), which has been banned by the Reserve Bank of India from accepting deposits, credit transactions or recharges in customer accounts after March 15.
Paytm UPI payments declined in the month of February compared to January. It processed 1.41 billion monthly transactions of Rs 1.65 trillion in February, compared to 1.57 billion transactions of Rs 1.93 trillion in January, according to NPCI data.
RBI on Paytm Payments Bank
While NPCI is likely to grant a third-party application provider (TPAP) license to Paytm, the chances of an extension by the March 15 deadline set by the RBI for Paytm Payments Bank to cease operations are very slim .
“After March 15, 2024, no further deposits, credit transactions or recharges will be allowed on customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc,” RBI said in its older release.
Paytm founder Vijay Shekhar Sharma resigns
Paytm’s parent company One97 Communications earlier announced that it has withdrawn its nominee from the Paytm Payments Bank Board and Vijay Shekhar Sharma has also resigned as part-time non-executive chairman. Today, Paytm shares will be in focus.According to the reports, Paytm Payments Bank has reconstituted its board.