NPCI said the approval would be contingent on the fintech startup complying with all NPCI guidelines and circulars on risk management, branding guidelines, among others.
It is pertinent to note that Paytm was hit by the Reserve Bank of India (RBI) restrictions on its payments banking arm in January this year.
Subsequently, Paytm roped in Axis Bank, Yes Bank, SBI and HDFC Bank as payment service provider (PSP) banks to offer UPI services.
In a major development, the fintech giant Pay
said it has received approval from the National Payments Corporation of India (NPCI) to onboard new Unified Payments Interface (UPI) users.
In its approval letter to Paytm, NPCI said the approval would be contingent on the fintech company’s compliance with all guidelines and circulars on risk management, branding guidelines for apps and QRs, multi-bank guidelines, TPAP market share and customer data, among others. .
“…We would like to inform you that through video letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted permission to the company to onboard new UPI users, adhering to all procedural guidelines and circulars of the NPCI”, the the company said in the filing.
It is pertinent to note that Paytm was hit by the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank Limited (PPBL) in January this year. This effectively prevented the company from onboarding new UPI users onto its platform, as PPBL powered the fintech major’s entire UPI stack.
Subsequently, Paytm partnered with Axis Bank, Yes Bank, SBI and HDFC Bank as payment service provider (PSP) banks to offer UPI services.
The nod comes as a major reprieve for Paytm as it will allow the company to once again attract new consumers and expand its user base. To recall, Paytm, which accounted for a market share of 13% in terms of UPI transactions in January 2024, fell to around 7% in September due to restrictions imposed by the RBI.
Despite the restrictions, Paytm completed over 100 Cr transactions in September and is the third largest UPI payments processor in the country.
Earlier today, the Fintech major reported consolidated profit after tax (PAT) of INR 930 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25), compared to a loss of INR 292 Cr in the year-ago period. The profit largely came from a one-time exceptional gain of INR 1,345 Cr from the sale of its entertainment ticketing business to Zomato.
At the same time, operating revenue fell 34% year-on-year to INR 1,660 Cr in the quarter under review, compared to INR 2,519 Cr in the year-ago period.
During the company’s post-earnings call, Paytm co-founder and CEO Vijay Shekhar Sharma said the company’s FLDG (first loss by default) approach will strengthen its distribution-focused merchant lending business .
Shares of Paytm ended 5.31% lower at INR 687.30 on the BSE on Tuesday (October 22).