NPCI has given a go ahead to Paytm to be a third party UPI app. In order to power the payment service Axis Bank, HDFC Bank, SBI and Yes Bank will act as partners for Payment System Provider (PSP). To proceed with full-fledgedly and hassle free operations, NPCI has advised Paytm to complete all the mandates related to migration. Paytm has to meet the formalities so that new PSD banks can start with their operations at the earliest. Paytm is an Official Third-Party UPI App Now
One97 Communications, the parent company of Paytm has been granted approval by NPCI to participate as a third-party application provider. This step is taken to make banking easier for the customers. The multi-bank model is convenient for all customers and they do not require to download individual apps.
Paytm is an Official Third-Party UPI App Now
The payment interface was interrupted for a few weeks but now with this approval, Paytm can continue to offer UPI services to its customers. When Paytm launched its Paytm Payment bank limited (PPBL), its operations were seized by under regulatory action.
Partnering with these four banks, Paytm will now act as Payment System Provider (PSP). It helps the UPI app to connect with the banking channel. Being a third party, Paytm will be able to provide its services to a great level with the support of these banks and can participate in UPI services under multi-bank model.
This approval was much awaited so that Paytm could continue rendering its services to its app users. The users were facing issues related to Paytm bank after its Paytm Payment bank Limited got ceased. But now when Paytm has got the approval, it will continue its operations post March 15 as per the new regulations.
The new regulations will allow Paytm to provide its payment services to the app users in partnership with four banks HDFC Bank, Axis Bank, State Bank of India and Yes Bank. These banks will act as Payment System Provider (PSP). PSP is a unit which helps connect UPI apps to the banking channel. Paytm itself cannot act as a PSP because only banks can be a PSP.
This approval has not acted as an aid to Paytm but it is convenient to its app users too. They can now continue using the app like they were using it before. Hassle free and conveniently.
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