NPCI has given approval to Paytm to add new UPI users. According to Paytm, this approval has been received after following all the procedural guidelines and circulars.
Paytm News: The National Payments Corporation of India (NPCI) has approved Paytm to add new UPI users. According to Paytm, this approval has been received after following all the procedural guidelines and circulars. This move is expected to provide relief to Paytm, which suffered a setback earlier this year after the Reserve Bank imposed restrictions on its affiliate company Paytm Payments Bank Limited (PPBL) in adding new UPI users on the Paytm app.
In March, the National Payments Corporation of India approved Paytm to participate in UPI as a third-party application provider (TPAP). NPCI allowed the company to continue UPI transactions through four banks – SBI, Axis Bank, HDFC Bank and Yes Bank.
Paytm told BSE in filing
According to PTI news, in a filing late Tuesday evening, Paytm told BSE that it has received approval from NPCI to onboard new UPI users.
Paytm has said in the filing, “We wish to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India has approved the company to onboard new UPI users with compliance with all NPCI procedural guidelines and circulars.”
Approval subject to compliance with guidelines and circulars
According to the letter, the approval is subject to compliance with all NPCI procedural guidelines and circulars issued from time to time, including in particular the guidelines and circulars issued on risk management, brand guidelines for apps and QR, multi-bank guidelines, TPAP market share and customer data. The company will also be required to comply with the requirements mentioned in the third party agreement with NPCI and PSP banks.
It also states that “… comply with all laws and regulatory guidelines in force and issued from time to time, including the Payments and Settlements Act 2007, the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023 and the circular on storage of payment system data,” according to NPCI’s letter to Vijay Shekhar Sharma, founder and CEO of One97 Communications.
One97 Communications is the parent company of fintech company Paytm. While allowing One97 Communications (OCL) to onboard new users on its UPI application, NPCI noted that it had received a letter from the company on August 1, seeking approval to onboard new UPI users on the Paytm app, which was put on hold as per RBI directions.
