Paytm gets green light from NPCI to onboard new UPI users
Paytm's new UPI registrations were halted in January and February 2024 following directives from the Reserve Bank of India (RBI) barring the fintech from onboarding new UPI users.
One 97 Communications Limited, the parent company of , said that it has received approval from the National Payments Corporation of India (NPCI) to resume onboarding new UPI (Unified Payments Interface) users.
Paytm's new UPI registrations were halted in January and February 2024 following directives from the Reserve Bank of India (RBI) barring the fintech from onboarding new UPI users and accepting deposits or top-ups in wallets, FASTags, and customer accounts.
The NPCI’s approval comes with several conditions. Paytm must adhere to all NPCI procedural guidelines and circulars, especially those concerning risk management, branding guidelines for its app and QR code, and data protection measures.
"Adhere to all laws and regulatory guidelines as applicable and issued from time to time including Payments and Settlement act 2007, Information Technology Act, 2000, Digital Personal Data Protection Act, 2023 and circular on Storage of Payment System Data, 2018," The NPCI order said.
In its Q2 earnings report Paytm's said that its monthly transacting users (MTU) for the quarter averaged 7 crore users, a decline from 7.8 crore users in the previous quarter, largely due to the ongoing restriction on new UPI user onboarding. In September, Paytm's MTUs dipped to 6.8 crore users.
Paytm had to migrate 13.5 crore UPI users to its new system in partnership with banks like SBI, HDFC Bank, Axis Bank, and Yes Bank, following the RBI's mandate to shift users after Paytm Payments Bank was asked to stop transactions post 15 March.
Edited by Jyoti Narayan