Paytm NPCI Licence: Paytm gets third-party licence before March 15 deadline
Paytm NPCI Licence: Paytm gets a third-party application provider licence from the National Payments Corporation of India on Thursday, a day before the March 15 deadline of the Paytm Payments Bank to shut its operations.
Also Read: Paytm layoffs: Teams may be cut by 20% in size, says report. Company says employee assessment ‘routine’
The licence will provide Paytm’s customers another option to use its app for payments after its banking arm Paytm Payments Bank, ceases operations by March 15, following regulatory action due to non-compliance with certain norms.
According to the NPCI release, four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Payment System Provider) banks to One97 Communications.
“YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank,” NPCI said in the release.
In February, the Reserve Bank of India (RBI) asked the NPCI to examine a request from Paytm to become a third-party application provider.
The fintech has been advised to finish the migration for all existing handles and mandates, wherever required, to new payment system provider banks at the earliest, the NPCI said. Paytm completed 1.41 billion monthly transactions worth 1.65 trillion rupees in February, down from 1.57 billion transactions worth 1.93 trillion in January, according to data on the NPCI website.
Earlier, the fintech’s Paytm Payments Bank Limited (PPBL) held the Third-Party Application Provider (TPAP) licence. The existence of PPBL enabled Paytm to shed away the need for a separate TPAP license, like its rival apps like Google Pay, PhonePe, Cred and Amazon Pay. Paytm’s maximum transactions (approximately 75% of gross merchandise value (GMV) ) are from customers using the UPI for transactions on its app.
Paytm has cut back all the business operations with Paytm Payments Bank. Moreover, Vijay Shekhar Sharma resigned from the bank’s board and also stepped down as a part-time non-executive chairman.
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Published: 14 Mar 2024, 06:59 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.