Paytm UPI gets other banking partners in HDFC, SBI, Yes Bank

Partners in crisis: Private banks HDFC and Yes Bank have applied to   National Payments Corporation of India (NPCI) for third-party application status for UPI this week, as per reports.

This comes after Reserve Bank of India ordered NPCI to look into Paytm parent One97 Communication’s request as a TPAP for Unified Payments Interface (UPI).

RBI said NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks, who exhibit demonstrated capabilities to process high volume UPI transactions.

As per reports, Paytm has also initiated conversations with SBI, Canara Bank and ICICI Bank for TPAP partnerships.

Amid RBI’s mandate on allowing only withdrawals and deposits in banks and wallets, and an order to migrate linked FASTags and National Common Mobility Cards (NCMC), Paytm is fast-tracking its partnerships with third party players.  

It is also likely that transition from PPBL to or banks will take six months, as per media reports. It is also expected for @paytm to remain functional after March 15.

Meanwhile, Paytm cant onboard new customers until all have been migrated to Paytm's new UPI handle, RBI said.

Paytm and Banks

development comes after Paytm Payments Bank Limited (PPBL) was restricted by RBI to accept furr credits in customer accounts and wallets by February 29, which RBI extended by 15 days in mid-February. 

Paytm has asked users to migrate default accounts from PPBL to ar banking platform. Paytm has partnerships with leing public and private banks such as State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank, Kotak Bank, as well as hundreds of ors listed on its platform.

In 2018, Paytm h partnered with IndusInd Bank to offer fixed deposits. Before Paytm having its own bank for PSP partnerships, it h third party bank partnerships like or UPI providers and wallets in league of PhonePe, Google Pay and Amazon.

Restrictions on listed fintech are bound to affect merchants, who have been using Paytm’s banking services to receive payments. This also led Confederation of All India Trers (CAIT) to ask users to migrate to or players such as PhonePe and Google Pay. February 29 deline to wind down operations n was extended by 15 days till March 15, RBI said in a February order in interest of merchants.

In January this year, Paytm said it crossed 100 million monthly transacting users for first time, during its third-quarter results.

company saw its revenue rise 38 per cent annually to Rs 2,850.5 crore in October to December period.