RBI has ordered Paytm Payments Bank to cease operations by March 15. India’s National Payments Corporation of India (NPCI) has approved a third-party license for Paytm. This will allow Paytm users to continue accessing UPI even after March 15. According to the NPCI website, Paytm’s parent firm, One97 Communications, has five handles and works with four banks to conduct UPI transactions.
RBI Directive On Paytm Payments Bank
The Reserve Bank of India (RBI) ordered Payments Bank to cease operations by March 15. The NPCI has granted it an official third-party app license, allowing business users to access UPI beyond March 15.
One97 Communications, Paytm’s parent company, has five handles and partners with four banks for UPI transactions, as per NPCI. NPCI has selected Axis Bank, HDFC Bank, State Bank of India, and Yes Bank as Paytm’s partner banks.
NPCI Authorization For Paytm’s Third-Party App License
Previously, Paytm relied on Payments Bank (PPBL) to handle all its UPI transactions. However, as of March 15, the Reserve Bank of India has barred PPBL from accepting deposits, credit transactions, or top-ups in any user account.
According to NPCI data, Paytm’s UPI payments declined in February compared to January. In February, Paytm completed 1.41 billion transactions worth Rs 1.65 trillion, down from 1.57 billion transactions worth Rs 1.93 trillion in January.
Impact Of RBI’s March 15 Deadline On Paytm Payments
Today, investors will closely watch the performance of Paytm stock amid these regulatory developments. Paytm is expected to potentially receive a TPAP license from NPCI, but the RBI is unlikely to extend the March 15 deadline for the closure of Paytm Payments Bank.
One97 Communications, Paytm’s parent company, announced the removal of a candidate from the Paytm Payments Bank Board. Vijay Shekhar Sharma, part-time non-executive chairman of Paytm, has also resigned from his position. These changes reflect ongoing adjustments amidst regulatory and organizational shifts.
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