National Payments Corporation of India (NPCI), on Thursday, officially authorized Paytm’s Parent One97 Communications Limited (OCL), to participate in the unified payments interface (UPI) as a Third-Party Application Provider (TPAP) within the multi-bank model.
Amid the ongoing regulatory issues from the Reserve Bank of India (RBI), One97 Communications is looking to lay off 20% of its workforce across some departments as part of its annual performance review, based on the report of Moneycontrol on Wednesday.
NPCI said financial service providers Axis Bank, HDFC Bank, State Bank of India (SBI) and YES Bank will act as Payment System Provider (PSP) banks to OCL, meaning the banks will offer support OCL needs, in order to access electronic payments from credit cards and digital wallets.
Of the four, YES Bank will act as a merchant acquiring bank for existing and new UPI merchants for OCL, and @Paytm handle will be redirected to YES Bank, said NPCI, which will allow the users and merchants to continue their UPI transactions and AutoPay mandates seamlessly and without interruptions.
In early March, the firm’s board members agreed to discontinue various inter-company agreements with PPBL and introduced additional measures to strengthen its approach towards independent operations of PPBL.
Mobile internet company One 97 Communications is headquartered in Noida, India. Paytm is a leading payment solution provider to e-commerce merchants using its RBI-approved semi-closed wallet.
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