-Indian digital payments company Paytm, formally known as One 97 Communications, was granted a third-party application provider license by the country's payments authority on Thursday, allowing it to facilitate payments after the banking unit shut down operations.
The license will allow customers to continue using the Paytm app for payments via India's popular unified payment interface (UPI), after Paytm Payments Bank ceased operations on March 15 following regulatory action for non-compliance with certain standards.
Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system providers for Paytm, the National Payments Corporation of India (NPCI) said in a statement.
Yes Bank will also act as a merchant acquiring bank for existing and new UPI merchants for Paytm, it added.
Paytm has been advised to complete migration for all existing handles and mandates, where necessary, to new banks offering payment systems at the earliest, the NPCI said.
UPI is India's real-time payment system that allows users to transfer money between banks.
Paytm, the third largest UPI payment app in the country, processed 1.41 billion monthly transactions worth Rs 1.65 trillion in February, up from 1.57 billion transactions worth Rs 1.93 trillion in January, according to data on the NPCI website.
PhonePe and Google Pay are the two largest UPI payment apps in India.
Last month, the Reserve Bank of India (RBI) had asked the NPCI to look into a request by Paytm to become a third-party application provider.
Early this week, Reuters was the first to report that the NCPI was likely to approve a third-party application provider (TPAP) license for Paytm.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is published from a syndicated feed.)