One97 Communications to Partner with 4 Banks for UPI

By siliconindia  |  Thursday, 14 March 2024, 11:00:28 AM IST

One97 Communications to Partner with 4 Banks for UPI
In response to the looming deadline set by the Reserve Bank of India (RBI) for Paytm Payments Bank Limited (PPBL) to cease operations beyond March 15, the State Bank of India (SBI) has reportedly entered into a partnership with One97 Communications, the parent organization of Paytm. According to reports, this collaboration aims to facilitate Unified Payments Interface (UPI) payments for Paytm's consumer base.
The arrangement involves four major banks—Yes Bank, Axis Bank, HDFC Bank, and SBI—providing support for Paytm's consumer-facing UPI payments. As per insider sources cited in the report, these banks will issue fresh handles from the backend and gradually migrate customers to each of the four banks. This strategic distribution intends to distribute the load evenly among the supporting entities, preventing undue pressure on any single institution.
In a proactive move, Paytm had already shifted its nodal accounts to Axis Bank on February 20. This transition allows the settlement of UPI payments made by consumers to Paytm merchants via QR codes, ensuring continuity for merchants accepting digital payments through the platform.
Meanwhile, the National Payments Corporation of India (NPCI) is anticipated to grant a third-party application provider (TPAP) license to Paytm by March 15. According to a Reuters source, most of the required checks for the license approval have been completed. While integration with banks may extend beyond the deadline, securing the TPAP license before March 15 is crucial for Paytm's continued operations.
Overall, these strategic maneuvers by Paytm and its partners aim to ensure seamless UPI payment services for consumers and merchants alike, even as regulatory deadlines approach.

ON THE DECK

siliconindia