The National Payments Corporation of India (NPCI), on Thursday, granted Paytm a third-party application provider license.
This will allow Paytm customers to continue using its app for payments through UPI after Paytm Payments Bank stops operations by Friday (March 15) as per the RBI guidelines.
Axis Bank, HDFC Bank, SBI, and YES Bank will act as partner banks to Paytm.
"YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner," a statement from NPCI read.
This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner, the regulator said.
It further said One97 Communications Ltd. has been advised to complete migration for all existing handles and mandates, wherever required to new PSP (payment service providers) banks at the earliest.
