Paytm Gets Third-Party License from NPCI, 4 Banks Provide Support

Paytm, which is involved in payment services, has received a third-party application provider (TPAP) license from the National Payments Corporation of India (NPCI). Paytm’s banking unit Paytm Payments Bank (PPBL) was ordered by the Reserve Bank of India (RBI) to stop services from March 15. The reason for this was the compliance violations committed by PPBL.

PPBL’s wallet, credit transactions and fastag recharge services will stop after March 15. However, its customers will be able to use the Unified Payments Interface (UPI). NPCI has said in a press release that HDFC Bank, Axis Bank, State Bank of India and YES Bank have agreed to become payment system providers (PSPs) of One97 Communications, which runs Paytm. This will allow users to link their bank accounts to Paytm and do UPI-related transactions.

last month Paytm But there were 1.41 billion transactions worth about 1.65 lakh crores. The company has planned to lay off about 20 percent of the workers from PPBL. This layoff will be done in some divisions including operations. Reuters report quoted sources aware of the matter as saying, “Due to this order of RBI, workers with low ratings for appraisal have been asked to resign. There is disappointment among the workers as the management has gone back on its promise of not laying off anyone.” In December last year, Paytm Payments Bank had about 2,775 workers.

One 97 Communications holds about 49 percent stake in Paytm Payments Bank. RBI Paytm’s stock had fallen sharply after the order to shut down this unit of Paytm. Earlier this month, the Financial Intelligence Unit (FIU) had imposed a penalty of more than Rs 5 crore on Paytm Payments Bank. The reason for this was violations in reporting illegal money sent through Paytm Payments Bank accounts. FIU, which comes under the Finance Ministry, had investigated PPBL after receiving information from law enforcement agencies about some entities being involved in illegal activities including online gambling and sending the proceeds through the bank.