Paytm accelerates user migration to PSP Banks after NPCI approval

Paytm user migration: One 97 Communications Limited, the parent company of Paytm, has received approval from the National Payments Corporation of India (NPCI) to participate in the Unified Payments Interface (UPI) as a Third-Party Application Provider (TPAP) under multibank mode, according to a stock exchange filing. 

Following the receipt of this approval, Paytm has accelerated the migration of its users to Payment Service Provider (PSP) banks. The company has announced that banks such as Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank are now operational on the Paytm platform as TPAPs.

This move aligns with Paytm's ongoing efforts to improve its position in India's digital payments sector after the recent setback that was followed by a notice from RBI to its banking arm, Paytm Payments Bank Limited. 

Effective March 2024, the Reserve Bank of India (RBI) barred the Paytm Payments Bank, from introducing additional banking services. The action follows concerns raised by the RBI regarding potential breaches of regulatory norms and compliance issues.

Paytm Payments Bank was barred from accepting deposits or undertaking credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags and NCMC (National Common Mobility Cards), among others, post-February 29, 2024.

By collaborating with renowned banking institutions and using the capabilities of the UPI framework, Paytm aims to provide its users with seamless and secure payment experiences.