New Delhi: One97 Communications Ltd, the parent company of Paytm, has been granted approval by the National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP) within the UPI framework under a multi-bank model. Under this arrangement, Axis Bank, HDFC Bank, State Bank of India, and YES Bank will serve as Payment System Provider (PSP) banks for Paytm.
In addition to their role as PSP banks, YES Bank will also serve as the merchant acquiring bank for both existing and new UPI merchants associated with One97 Communications Ltd. NPCI has stated that the @Paytm handle will now be redirected to YES Bank.
This development ensures continuity for existing users and merchants, allowing them to conduct UPI transactions and AutoPay mandates seamlessly. Paytm has been instructed to swiftly migrate all existing handles and mandates to the new PSP banks as necessary.
NPCI’s decision arrives just ahead of the Reserve Bank’s deadline, which requires customers and merchants of Paytm Payments Bank Ltd (PPBL) to transition their accounts to alternative banks.
