Paytm to add new UPI users, approval received from NPCI

New Delhi| There is relief news for Paytm. National Payments Corporation of India (NPCI) has approved the company to add new UPI users. According to the company, this approval has been received after following all the procedural guidelines and circulars.

Paytm Payments Bank Ltd (PPBL), a partner in inducting new UPI users on the Paytm app, suffered a setback earlier this year following restrictions by the Reserve Bank of India. In March, NPCI 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.

After getting the approval, Paytm wrote a letter to the Bombay Stock Exchange (BSE) late on Tuesday evening. Said, ‘We are pleased to inform that NPCI, by letter dated October 22, 2024, has approved the company to add new UPI users, including following all NPCI procedural guidelines and circulars.’

The NPCI letter said this approval is subject to compliance with all NPCI procedural guidelines and circulars, including guidelines related to risk management, brand guidelines for apps and QR codes, multi-bank guidelines, TPAP market share and customer data. The company will also have to comply with the requirements mentioned in the tripartite agreement with NPCI and PSP banks.

The letter from NPCI addressed Vijay Shekhar Sharma, Founder and CEO of One97 Communications. One97 Communications is the parent company of fintech firm Paytm. According to the letter, Paytm must comply with all applicable laws and regulatory guidelines, including the Payment and Settlement Act 2007, the Information Technology Act 2000, the Digital Personal Data Protection Act 2023 and Circular 2018 on the storage of payment system data.

While allowing One97 Communications Private Limited (OCL) to include new users on its UPI application, NPCI noted that it had received a letter from the company dated August 1, 2024, requesting that approval be given to include new UPI users on the Paytm app. Which was stopped as per RBI instructions dated January 31, 2024 and February 16, 2024.

The Paytm filing lists various conditions saying, ‘Upon checking your request, we give our approval and allow One97 Communications Private Limited (OCL) to include new users on its UPI application.’ In a major action against Paytm Payments Bank (PPBL), the RBI on January 31 had directed it to stop accepting deposits or top-ups in any customer account, wallet, Fastag and other devices, as it cited persistent non-compliance and continued content.