Indian digital funds agency Paytm, formally generally known as One 97 Communications, was on Thursday granted a third-party utility supplier license by the nation’s funds authority, which is able to allow it to facilitate funds after its banking unit ceases operations.
The license will permit prospects to proceed utilizing the Paytm app for funds by India’s standard unified fee interface (UPI), after Paytm Funds Financial institution ceases operations by March 15, following regulatory motion resulting from non-compliance with sure norms.
Axis Financial institution, HDFC Financial institution, State Financial institution of India and Sure Financial institution will act as fee system supplier banks to Paytm, the Nationwide Funds Company of India (NPCI) stated in a press release.
Sure Financial institution shall additionally act as a service provider buying financial institution for current and new UPI retailers for Paytm, it added.
Paytm has been suggested to finish the migration for all current handles and mandates, wherever required, to new fee system supplier banks on the earliest, the NPCI stated.
UPI is India’s real-time funds system that enables customers to switch cash throughout banks.
Paytm, the third-largest app for UPI funds within the nation, processed 1.41 billion month-to-month transactions value 1.65 trillion rupees in February, down from 1.57 billion transactions value 1.93 trillion in January, in accordance with knowledge on the NPCI web site.
PhonePe and Google Pay are the 2 largest UPI fee apps in India.
Final month, the Reserve Financial institution of India (RBI) had requested the NPCI to look at a request from Paytm to change into a third-party utility supplier.
Early this week, Reuters was the primary to report that the NCPI was more likely to approve a third-party utility supplier (TPAP) license for Paytm.
© Thomson Reuters 2024
