Relief for Paytm: NPCI allows Paytm to add new UPI customers

PTC News Desk: In a big relief to Paytm, the National Payments Corporation of India (NPCI) has approved Paytm's onboarding of new UPI customers, subject to all procedural guidelines and circulars being followed.

The decision is likely to provide respite to Paytm, which was hit earlier this year by the Reserve Bank of India's restrictions on associate company Paytm Payments Bank Limited (PPBL) in onboarding new UPI users on the Paytm app.

In March, the NPCI approved Paytm's participation in UPI as a Third-Party Application Provider (TPAP). The NPCI approved the company to continue UPI transactions with four banks: SBI, Axis Bank, HDFC Bank, and YES Bank.

Paytm informed the BSE late on Tuesday that it has acquired approval from the NPCI to onboard new UPI customers.

"...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 said.

According to the letter, approval is subject on compliance with all NPCI procedural guidelines and circulars issued from time to time, including guidelines and circulars on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP market share, and customer data.

In addition, the company must follow the terms of the tri-partite agreement with NPCI and PSP Banks.

According to the NPCI letter addressed to Vijay Shekhar Sharma, founder and CEO of One97 Communications, 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."