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The National Payments Corporation of India (NPCI) has granted approval to Paytm to onboard new UPI users, subject to the adherence to all procedural guidelines and circulars, according to the company.
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The move is expected to come as a relief to Paytm, which had suffered a blow following the Reserve Bank of India’s restrictions earlier this year on associate company Paytm Payments Bank Limited (PPBL) in onboarding new UPI users on the Paytm app.
In March, the NPCI gave approval to Paytm to participate in UPI as a Third-Party Application Provider (TPAP). The NPCI allowed the company to continue UPI transactions through four banks – SBI, Axis Bank, HDFC Bank and YES Bank.
In a late evening filing on Tuesday, Paytm informed the BSE that it has received approval from the NPCI to onboard new UPI users.
“…we would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars,” the Paytm filing, which also attached the NPCI letter granting the nod, said.
According to the letter, the approval is subject to adherence to all NPCI procedural guidelines and circulars issued from time to time, including guidelines and circulars issued specifically on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP market share and customer data.
The company will also need to adhere to the requirements outlined in the tri-partite agreement with NPCI and PSP Banks.
It has also been asked to “…adhere to all laws and regulatory guidelines as applicable and issued from time to time including Payments and Settlement Act 2007, Information Technology Act, 2000, Digital Personal Data Protection Act, 2023 and circular on Storage of Payment System Data, 2018,” as per the NPCI letter addressed to Vijay Shekhar Sharma, founder and CEO of One97 Communications.
One97 Communications is the parent company of fintech firm Paytm.
While permitting One97 Communications (OCL) to onboard new users on its UPI application, the NPCI noted that it had received a letter from the company on August 1 requesting approval for onboarding new UPI users on the Paytm app which was stopped as per RBI directions dated January 31 and February 16.
“Upon examination of your request, we hereby accord our approval and permit One97 Communications Private Limited (OCL) to onboard new users on their UPI application,” the Paytm filing said, listing out the various conditions.
In a major action against Paytm Payments Bank (PPBL), the RBI had on January 31 directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments, as it cited persistent non-compliance and continued material supervisory concerns.
Published – October 23, 2024 08:51 am IST
