These merchants were onboarded on the Paytm app as UPI merchants by Paytm Payments Bank
Axis Bank and Yes Bank have already begun operating on the Paytm platform, while discussions are also underway with Canara Bank and Kotak Mahindra Bank
Earlier this month, Paytm also secured the TPAP licence from the National Payments Corporation of India (NPCI)
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Paytm’s parent entity One97 Communications Ltd is reportedly in talks to onboard HDFC Bank as its third partner for migrating merchants on the fintech platform.
These merchants were onboarded on the Paytm app as UPI merchants by Paytm Payments Bank, Moneycontrol reported.
It is pertinent to note that the payments bank was asked by the Reserve Bank of India to shut services such as deposits, credit transactions and FASTag recharges from March 15.
The report said that Axis Bank and Yes Bank have already begun operating on the Paytm platform. Besides, discussions are also underway with Canara Bank and Kotak Mahindra Bank, with Canara Bank expected to roll out operations on the platform as early as next week.
Besides, State Bank of India is also expected to commence operations as payment service provider (PSP) bank for Paytm’s third-party application provider (TPAP) business, which manages the UPI consumer transactions. Paytm currently serves an estimated 90 Mn UPI users on its platform.
Paytm secured the TPAP licence from the National Payments Corporation of India (NPCI) on March 14.
With the licence, the fintech major can operate UPI services under a multi-bank model.
Paytm has been looking for partnerships with several banks to help its merchants seamlessly continue with Paytm’s offerings.
The RBI has put punitive restrictions on PPBL, but it’s allowed businesses and UPI users to keep using their Paytm handles, QR codes and machines for payments even after March 15.
Earlier this year the RBI announced a slew of curbs on the payments bank and barred it from taking any deposits, credit transactions, or top-ups in any of its customer accounts for “persistent non-compliance and continued material supervisory concerns”.
In addition, the apex bank barred it from offering other banking services, such as UPI facility and fund transfers, after February 29. Afterwards, it extended the timeline to March 15 for some of the restrictions.
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