National Payments Corporation of India (NPCI) on Thursday granted a license to One 97 Communications Ltd. (OCL), which operates as Paytm, to offer UPI transactions as a Third-Party Application Provider (TPAP) under multi-bank model.
Four banks -- Axis Bank, HDFC Bank, State Bank of India and Yes Bank -- will act as Payment System Provider (PSP) banks to OCL, NPCI said in a statement.
Yes Bank will also act as merchant acquiring bank for existing and new UPI merchants for OCL, it clarified. “@Paytm” handle will be redirected to Yes Bank, it added.
“This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner. OCL has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest,” NPCI said.
