Paytm Gets Green Light for UPI Expansion

The National Payments Corporation of India (NPCI) has approved Paytm to onboard new UPI users, overcoming previous restrictions. This decision comes after the Reserve Bank of India's earlier restrictions on Paytm Payments Bank. The approval includes compliance with various guidelines and a tri-partite agreement with PSP banks.

The National Payments Corporation of India (NPCI) has granted Paytm the authority to onboard new UPI users, marking a significant development for the fintech firm. The decision follows earlier restrictions imposed by the Reserve Bank of India on Paytm Payments Bank, which had hampered the company's growth in the UPI space.

Paytm, known for its digital payment solutions, was earlier allowed to operate as a Third-Party Application Provider (TPAP) for UPI transactions through banks such as SBI, Axis, HDFC, and YES Bank. However, the latest approval from NPCI indicates a broader scope for Paytm to expand its user base, provided it adheres to stringent guidelines.

As part of the conditions set by the NPCI, Paytm must comply with various procedural guidelines, risk management protocols, and data protection directives. This move coincides with Paytm's financial turnaround, as its parent company, One97 Communications, reported a notable profit in the latest quarter, buoyed by strategic business decisions.

(With inputs from agencies.)