The National Payments Corporation of India (NPCI) has on Thursday approved One97 Communications Limited (OCL), which operates popular fintech company Paytm, to participate in UPI as a Third-Party Application Provider (TPAP) under the multi-bank model. Four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Payment System Provider) banks to OCL, as per an NPCI release.
"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.
This arrangement will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates seamlessly and uninterruptedly. "OCL has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest," NPCI said.
National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI is focused on bringing innovations in the retail payment systems through the use of technology and is relentlessly working to transform India into a digital economy.
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