One97 Communications Limited, the parent company of Paytm, informed stock changes on Tuesday that it has received approval from the National Payments Corporation of India (NPCI) to onboard new users for its Unified Payments Interface (UPI) application.
This development comes after a suspension of new user onboarding imposed by the Reserve Bank of India (RBI) in early 2024.
In a letter dated October 22, 2024, One97 Communications informed stock exchanges about the NPCI’s decision, which allows the company to resume adding new UPI users while adhering to NPCI’s procedural guidelines and circulars.
The NPCI’s approval comes in response to a request made by Vijay Shekhar Sharma, Founder and CEO of One97 Communications, on August 1, 2024. The request sought to lift the restrictions that had been in place since RBI directives issued on January 31 and February 16, 2024, which had temporarily halted new user onboarding.
In its response, the NPCI confirmed the approval, allowing One97 Communications to proceed with onboarding new users on the Paytm app. However, the approval is contingent upon strict compliance with several conditions.
Paytm to comply with NPCI Guidelines
One97 Communications must follow all procedural guidelines and circulars issued by NPCI, which include risk management protocols, brand guidelines for the app and QR codes, multi-bank guidelines, market share regulations for Third-Party Application Providers (TPAP), and customer data handling.
The company must also meet the requirements set forth in the tri-partite agreement with NPCI and Payment Service Provider (PSP) banks.
Paytm is also required to comply with all applicable laws and regulatory guidelines, including the Payments and Settlement Act of 2007, the Information Technology Act of 2000, the Digital Personal Data Protection Act of 2023, and NPCI’s circular on the storage of payment system data issued in 2018.
Th approval from NPCI comes at a time when company is making its efforts to strengthen its position in the highly competitive UPI market.
