There is a lot of discussion about Paytm Payments Bank, one of the largest online payment platforms in the country. Recently, RBI had announced a ban on it. Whose last date is March 15. Meanwhile, big news is coming that Paytm is likely to get the license of a third-party application provider from the National Payments Corporation of India (NPCI).
India’s NPCI to approve Paytm request for third-party application license this week, sources say https://t.co/sb4kYbmyl5 pic.twitter.com/SOxz4DfG4p
— Reuters Business (@ReutersBiz) March 12, 2024
Expectation Of License Approval By March 15
According to the report of the news agency Reuters, the digital payment firm is expected to get approval for a third-party application provider license from NPCI by March 15. This license will be made available for One97 Communications’ product Paytm. After getting this license, Paytm will be able to provide payment service to its customers through its app without any problem, even after the closure of its banking service, Paytm Payments Bank.
The Central Bank (RBI) has announced a ban on the option of Paytm Payments Bank Limited from March 15 onwards. After this date, services like credit transactions, prepaid services, Fastag, customer deposits, and use of the National Common Mobility Card and wallet of Paytm Payments Bank will stop.
India’s NPCI to approve Paytm request for third-party application license this week, sources say.
This, once bank back ends are integrated (which may happen with some delay) will allow for UPI based payments to continue via Paytm app.
No extension likely to March 15 deadline…
— Ira Dugal (@dugalira) March 12, 2024
What Is A Third-Party App Provider?
These are platforms that provide NPCI’s UPI payment service. Such apps cannot sell banking products on these platforms on their own. Let us tell you that from Google Pay to PhonePe, all are third-party app providers.
According to the news agency report, if the license of Paytm’s third-party app provider is approved, then customers will continue to get the service of making payments through the Paytm app. Users will be able to make UPI payments connected to the accounts of other banks on Paytm.
