Paytm UPI Business: Troubled fintech company Paytm has finally selected its partner bank before the deadline of March 15. Paytm’s parent company One97 Communications has joined hands with the country’s largest bank State Bank of India (SBI).
Till now, Paytm’s UPI business was dependent on its subsidiary Paytm Payments Bank. Paytm was looking for a partner bank after the Reserve Bank of India (RBI) imposed a business ban on payments banks. Now Paytm will be able to become a Third Party App Provider (TPAP) in collaboration with SBI.
OCL handed over nodal account to Axis Bank
According to Money Control report, earlier Paytm had joined hands with Axis Bank, Yes Bank and HDFC Bank for TPAP partnership. In the report released a day ago, these same banks were said to be at the forefront of making a tie-up with Paytm. Last month, One 97 Communications (OCL) had handed over its nodal or escrow account to Axis Bank. The company had also given this information to BSE. With its help, merchants accepting digital payments through Paytm will be able to operate even after the deadline of March 15.
Paytm will get license by March 15
It is expected that National Payments Corporation of India (NPCI) will also grant TPAP license to Paytm by March 15. After getting this license, customers will be able to use Paytm UPI easily. Paytm Payments Bank will have to close its operations after March 15. Sources told Reuters that almost all investigations have been completed. Before the deadline ends, Paytm will have the TPAP license in its hands. However, integration with banks may take more than a month.
22 companies havetp ap License
TPAP has to ollow the guidelines of NPCI and partner banks. Also, data, information and system information have to be shared with RBI and NPCI regarding UPI transactions. At present, 22 companies including Amazon Pay, Google Pay, MobiKwik and WhatsApp have TPAP license in the country. Axis Bank is the partner of most of these UPI players. Paytm is the third largest UPI payments app in the country. In February, the company had processed 1.41 billion transactions worth about Rs 1.65 lakh crore. PhonePe and Google Pay are the two biggest players in the UPI payment segment.
