Paytm gets NPCI nod to onboard new UPI users – ThePrint –

New Delhi, Oct 22 (PTI) The National Payments Corporation of India (NPCI) has granted approval to Paytm to onboard new UPI users, subject to compliance with all procedural guidelines and circulars, the company said.

The move is expected to come as a relief to Paytm, which took a hit following the restrictions imposed by the Reserve Bank of India earlier this year on associate company Paytm Payments Bank Limited (PPBL) in onboarding new UPI users on the Paytm app.

In a late evening filing on Tuesday, Paytm informed the BSE that it has received approval from the NPCI to onboard new UPI users.

“…we would like to inform you that the National Payments Corporation of India (NPCI), in a vide letter dated October 22, 2024, has granted approval to the company to onboard new UPI users, subject to all procedural guidelines and circulars of the NPCI,” the Paytm filing, which also attached the NPCI letter granting the nod, said.

According to the letter, the approval is subject to compliance with all NPCI procedural guidelines and circulars issued from time to time, including guidelines and circulars specifically issued on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP market share and customer data.

The company will also have to adhere to the requirements laid down in the tripartite agreement with NPCI and PSP Banks.

It has also been asked to “…comply with all laws and regulatory guidelines as applicable and issued from time to time including the Payments and Settlement Act 2007, the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023 and the circular on the storage of payment systems. Data, 2018,” said the NPCI letter addressed to Vijay Shekhar Sharma, founder and CEO of One97 Communications.

One97 Communications is the parent company of fintech company Paytm.

While One97 Communications (OCL) was granted permission to onboard new users on its UPI application, the NPCI noted that it had received a letter from the company on August 1 seeking approval for onboarding new UPI users on the Paytm app, which was discontinued as per the RBI instructions dated January 31 and February 16.

“After considering your request, we hereby grant our approval and allow One97 Communications Private Limited (OCL) to onboard new users to their UPI application,” the Paytm filing said, listing the various terms and conditions .

In a major action against Paytm Payments Bank (PPBL), the RBI had on January 31 directed it to stop accepting deposits or recharges into customer accounts, wallets, FASTags and other instruments, citing persistent non-compliance and persistent material concerns over the supervision. PTI MBI IJT

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