Paytm’s parent company, One97 Communications Ltd, announced on October 22 that the National Payments Corporation of India (NPCI) has approved its request to onboard new UPI users. The approval comes with the condition that Paytm complies with NPCI’s risk management guidelines, app branding norms, multi-bank requirements, and data privacy policies.
That was after Paytm faced a setback earlier this year, caused by the Reserve Bank of India restricting Paytm Payments Bank Limited from onboarding new UPI users due to certain regulatory concerns. The RBI action forced Paytm to move to a third-party app model off the UPI services of PPBL.
Then, Paytm entered into a partnership with banks that double as PSPs, such as Axis Bank, Yes Bank, SBI, and HDFC Bank, to keep its UPI services running. The role of these banks is working as an intermediary between the fintech company or UPI apps and the banking network- the role PPBL plays in the case of Paytm.
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Source: Moneycontrol
News Desk
