National

The future of Paytm’s UPI business also depends on Paytm Payments Bank as the underlying platform banker.


Ahmedabad: The situation is becoming difficult day by day for Paytm. With the February 29 deadline approaching and fears of the company being probed by other investigating agencies, Paytm’s parent company has also begun efforts to ensure that its empire in UPI does not come to an end and has approached former SEBI A committee has been formed under the auspices of the Chief. For compliance and regulation.

This ban on payment bank business may prove to be even more serious for Paytm, which gave birth to the UPI system in India. According to an earlier report, Paytm may not sell the payment bank business to any other party, but according to a latest report, Paytm’s UPI payment business may also get a big blow.

Without RBI approval, Paytm’s UPI business may also be in danger. Without the green signal from the Reserve Bank, problems may increase for all UPI transactions on Paytm app after February 29. Currently Paytm’s UPI function is powered by Paytm Payments Bank and they are the only payment service provider on the Paytm platform. The PSP can be a bank that helps in connecting the UPI app to the banking channel. Only banks can play the role of PSP.

A large number of customers use UPI in their Paytm transactions. One97 Communication, the company that owns the Paytm brand, currently does not have any tie-up with any other commercial bank as a UPI app.

In simple words, all UPI handled payment service in Paytm app uses Paytm Payment Bank Limited as the platform bank.

If Paytm Bank ceases its banking activities after February 29, it will not be able to act as a payment service platform or settlement bank for UPI transactions. This clearly means that UPI transactions will not be possible through Paytm app.

According to the report, Paytm Payments Bank has issued 24.5 crore UPI handles, out of which about 9 crore UPI handles are monthly active users.

All UPI handles in the Paytm app use Paytm Payment Bank Limited as the payment service platform bank.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button