The National Payments Corporation of India approved One97 Communications Ltd, the owner of Paytm, to participate in UPI as a Third-Party Application Provider (TPAP) under the multibank model.
Four banks (Axis Bank, HDFC Bank, State Bank of India, and YES Bank) will operate as PSP (Payment System Provider) banks for OCL. YES Bank will also operate as the merchant acquiring bank for OCL’s existing and new UPI merchants. “Paytm” handle will be forwarded to YES Bank.
YES Bank will also serve as One97 Communications Ltd’s merchant acquiring bank for both existing and new UPI merchants. NPCI stated that the Paytm handle will be moved to YES Bank.
“This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” it said.
Paytm has been urged to complete the migration of all existing handles and mandates to new PSP banks as soon as possible, as applicable.
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