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Paytm News: National Payments Corporation of India (NPCI) has approved Paytm to add new UPI users. According to Paytm, this approval has been received after following all the procedural guidelines and circulars. The move is expected to provide relief to Paytm, which suffered a setback earlier this year when the Reserve Bank banned its subsidiary Paytm Payments Bank Ltd (PPBL) from adding new UPI users on the Paytm app.
In March, the National Payments Corporation of India had approved Paytm to participate in UPI as a Third Party Application Provider (TPAP). NPCI allowed the company to continue UPI transactions through four banks – SBI, Axis Bank, HDFC Bank and Yes Bank.
Paytm gave information to BSE
In a filing late Tuesday evening, Paytm told BSE that it has received approval from NPCI to onboard new UPI users, PTI reported.
Paytm said in the filing, “We wish to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India has granted approval to the company to onboard new UPI users with compliance with all NPCI procedural guidelines and circulars. Has given.”
Approval subject to compliance with guidelines and circulars
According to the letter, this approval is subject to compliance with all NPCI procedural guidelines and circulars issued from time to time, including specifically Risk Management, Brand Guidelines for Apps and QR, Multi-Bank Guidelines , including guidelines and circulars issued on TPAP market share and customer data. The company will also be required to comply with the requirements outlined in the third party agreement with NPCI and PSP banks.
According to the letter written by NPCI to Vijay Shekhar Sharma, founder and CEO of One97 Communications, it also said that “…the Payment and Settlement Act 2007, the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023 and the Payment System Data “All laws and regulatory guidelines in force and issued from time to time, including the circular on storage of MF, will be complied with.”
One97 Communications is the parent company of fintech company Paytm. While allowing One97 Communications (OCL) to add new users on its UPI application, NPCI mentioned that it had received a letter from the company on August 1, seeking approval to add new UPI users on the Paytm app, Which was stopped as per the instructions of RBI.