Paytm : There is news of relief for Paytm and its parent company One97 Communications Limited ( OCL ). National Payments Corporation of India i.e. NPCI has approved Paytm to become a third-party UPI app. After this approval, Paytm will now be able to continue its UPI service as a Third-Party Application Provider (TPAP) under the multi-bank model. Let us tell you that the operations of Paytm's banking unit Paytm Payment Bank Limited (PPBL) are going to be closed from March 15. In such a situation, under this license, Paytm users will now be able to use UPI service in the future also. Shares of Paytm closed today on March 14 at Rs 350.65 with a decline of 0.085 percent.

These four banks were made partner banks

Under this, four banks have been made partner banks of Paytm, which include Axis Bank, HDFC Bank, State Bank of India, and Yes Bank. These four banks will act as Paytm's Payment System Provider (PSP) to improve the payment service. Earlier, Paytm operated this service through PPBL, which held the TPAP license. Moneycontrol had earlier reported that NPCI, which runs UPI payments, is working with all banks to expedite the TPAP process by March 15. PSP helps the UPI app to connect with the banking channel. Only banks can act as PSPs.

NPCI statement

"Yes Bank will also act as the merchant acquiring bank for existing and new UPI merchants for OCL. The “@Paytm” handle will be redirected to Yes Bank. This will facilitate existing users and merchants," NPCI said in a statement. This will enable the continuation of UPI transactions and autopay mandate without any interruption. Further, NPCI has advised Paytm to complete the migration of all existing handles and mandates, wherever necessary, to the new PSP banks as soon as possible.

According to the data available on the NPCI website, Paytm is the third largest app for UPI payments in the country. In February, 1.41 billion monthly transactions worth Rs 1.65 lakh crore were made on this app.