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- By Aditya Pratap Singh
- Wed, 23 Oct 2024 08:32 AM (IST)
- Source:JND
Paytm: The National Payments Corporation of India (NPCI) has permitted Paytm to add new UPI users. According to Paytm, it has received this permission after adhering to all procedural guidelines and circulars. This move is anticipated to relieve Paytm, which experienced a setback earlier this year after the Reserve Bank of India imposed restrictions on its subsidiary, Paytm Payments Bank Limited (PPBL), from onboarding new UPI users to its Paytm app.
In March, the National Payments Corporation of India allowed Paytm to participate in UPI as a third-party application provider (TPAP) and continue UPI transactions through four banks: SBI, Axis Bank, HDFC Bank, and Yes Bank.
Paytm informs in a regulatory filing
According to PTI, Paytm submitted a notice to the BSE late Tuesday evening stating that permission had been received from the NPCI to add new UPI users.
Paytm remarked in the notice, "We would like to inform you that the National Payments Corporation of India has granted the company permission to add new UPI users, subject to all NPCI procedural guidelines and circulars, vide letter dated October 22, 2024."
According to the letter, the permission is subject to all NPCI procedural guidelines and circulars issued from time to time, including guidelines and circulars issued on risk management, brand guidelines for apps and QR codes, multi-bank guidelines, TPAP market share, and customer data. The company will also have to abide by the requirements specified in the third-party agreement between NPCI and PSP banks.
According to the NPCI's letter to Vijay Shekhar Sharma, founder and CEO of One97 Communications, it must comply with all laws and regulatory guidelines in force, including the Payments and Settlements Act 2007, the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023, and the circular on the storage of payment system data.
