Paytm has been granted permission by the National Payments Corporation of India (NPCI) to onboard new UPI users. This is a significant development for Paytm, as they had faced restrictions earlier this year.
The Reserve Bank of India's limitations on Paytm Payments Bank Limited (PPBL) had previously affected the onboarding process. To overcome this, Paytm transitioned to a third-party app model and partnered with major banks such as Axis Bank, Yes Bank, State Bank of India, and HDFC Bank. These banks will now serve as Paytm's payment service providers.
The NPCI's approval is subject to Paytm following various guidelines related to risk management, brand standards, and customer data. This move is expected to enhance Paytm's capabilities in the competitive digital payments landscape.