Tuesday, July 23, 2024

SBI Partners with Paytm for its UPI Business: Report

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Reserve Bank of India (RBI) has imposed restrictions on Paytm Payments Bank Limited (PPBL), requiring it to cease operations by March 15. In response, Paytm’s parent company, One97 Communications, is seeking new partnerships for its UPI business, with reports suggesting State Bank of India (SBI), Yes Bank, Axis Bank, and HDFC Bank as potential collaborators.

State Bank of India (SBI) reportedly collaborates with Paytm for its UPI business, reshaping the landscape of online transactions.

UPI Payment System

Transitioning to new banking partners to comply with the RBI’s directives, Paytm has begun shifting its operations to other banks to settle UPI payments. This move aims to ensure continuity for merchants and customers post-March 15 and minimize service disruptions.

Paytm is expected to obtain a third-party application provider (TPAP) license from the National Payments Corporation of India (NPCI) by the RBI’s deadline. This license is vital for Paytm to continue offering UPI payment services despite PPBL’s operational halt.

reserve bank of india

To maintain stability in digital payments, the RBI has instructed the seamless migration of customers and merchants from PPBL to newly identified banks. This directive highlights the importance of a reliable payment infrastructure, especially for a major player like Paytm.

Despite regulatory challenges, Paytm remains a significant player in India’s digital payment landscape, processing billions of UPI transactions monthly. Partnerships with major banks and the anticipated TPAP license are expected to reinforce Paytm’s market position, ensuring continued service for its extensive user base.

Paytm Gets NPCI Nod to Become Third-Party App

NPCI grants approval to One97 Communications Limited (OCL), Paytm’s parent entity, to participate in UPI services as a Third-Party Application Provider (TPAP) under multi-bank model.

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