Paytm gets approval from National Payments Corporation to onboard new UPI users
In a move that is expected to come as a relief to Paytm, the National Payments Corporation of India (NPCI) has granted approval to the company to onboard new UPI users, subject to adherence to all procedural guidelines and circulars.
“We would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars”, Paytm said in a late-evening BSE filing, that also attached the NPCI letter granting the nod.
According to the letter, the approval is subject to adherence to all NPCI procedural guidelines and circulars issued from time to time, including guidelines and circulars issued specifically on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP Market share and customer data.
The company will also need to adhere to the requirements outlined in the tri-partite agreement with NPCI and PSP Banks.
“Adhere to all laws and regulatory guidelines as applicable and issued from time to time, including Payments and Settlement Act 2007, Information Technology Act, 2000, Digital Personal Data Protection Act, 2023 and circular on Storage of Payment System Data, 2018,” the NPCI letter addressed to Vijay Shekhar Sharma, founder and CEO of One97 Communications said.
One97 Communications is the parent company of fintech firm Paytm.
While permitting One97 Communications Private Limited (OCL) to onboard new users on their UPI application, the NPCI noted that it had received a letter from the company dated August 1, 2024, requesting that approval be granted for onboarding new UPI users on the Paytm app, which was stopped as per RBI directions dated January 31, 2024, and February 16, 2024.
“Upon examination of your request, we hereby accord our approval and permit One97 Communications Private Limited (OCL) to onboard new users on their UPI application,” the Paytm filing said, listing out the various conditions.