Mumbai: Making certain continuity in cost operations by Paytm customers, the Nationwide Funds Company of India (NPCI) on Thursday allowed the corporate to proceed UPI transactions by way of 4 banks — SBI, Axis Financial institution, HDFC Financial institution, and YES Financial institution.
The choice comes a day earlier than Reserve Financial institution’s March 15 deadline barring Paytm Funds Financial institution Ltd (PPBL) from accepting deposits, credit score transactions, or top-ups in any buyer accounts. One97 Communications Restricted (OCL), proprietor of the Paytm model, holds a 49 per cent stake in PPBL.
All PPBL prospects have been suggested by the RBI to shift to different banks by March 15. The PPBL had about 30 crore wallets and three crore financial institution prospects.
“NPCI has as we speak granted approval to One97 Communications Restricted (OCL) to take part in UPI as a Third-Get together Utility Supplier (TPAP) beneath multi-bank mannequin,” the cost infrastructure supplier mentioned in a press release.
The 4 banks will act as PSP (Cost System Supplier) banks to OCL.
“YES Financial institution shall even be performing as service provider buying financial institution for current and new UPI retailers for OCL,” NPCI mentioned.
Additional, it mentioned ‘@Paytm’ deal with could be redirected to YES Financial institution, “enabling current customers and retailers to proceed to do UPI transactions and autoPay mandates” in a seamless and uninterrupted method.
The OCL has been suggested to finish the migration for all current handles and mandates, wherever required, to new PSP banks on the earliest, NPCI mentioned.
Final week, RBI Governor Shaktikanta Das mentioned as many as 80-85 per cent Paytm pockets customers won’t face any disruption due to regulatory actions, and the remaining customers have been suggested to hyperlink their apps to different banks.
In a serious motion towards Paytm Funds Financial institution (PPBL), RBI, on January 31, directed it to cease accepting deposits or top-ups in any buyer accounts, wallets, FASTags and different devices after February 29. Subsequently, the deadline was prolonged to March 15.
The course follows persistent non-compliance and continued materials supervisory considerations, the central financial institution mentioned in a press release.
On March 11, 2022, the RBI barred PPBL from onboarding new prospects with rapid impact.
Following regulatory actions, promoter Vijay Shekhar Sharma final month stepped down as part-time non-executive Chairman of Paytm Funds Financial institution Restricted and the board of the financial institution has been reconstituted.
Former Central Financial institution of India chairman Srinivasan Sridhar, former Financial institution of Baroda Govt Director Ashok Kumar Garg, and two retired Indian Administrative Service (IAS) officers had been inducted on the board of the financial institution.
NHAI has suggested Paytm FASTag customers to acquire a brand new FASTag from one other financial institution earlier than March 15 to make sure a easy journey expertise and keep away from inconvenience at toll plazas.
