Paytm, a leading digital payments company in India, has gotten the green light from the National Payments Corporation of India (NPCI) to start adding new users to its Unified Payments Interface (UPI) platform again. This permission comes after the Reserve Bank of India (RBI) had earlier halted Paytm from onboarding new UPI users.
In a letter dated October 22, NPCI informed Paytm’s parent company, One97 Communications Ltd, about the approval. However, Paytm must follow specific rules and guidelines set by NPCI. These include adhering to risk management procedures, multi-bank guidelines, and data protection regulations.
Earlier this year, in January and February 2024, the RBI had directed Paytm to stop adding new UPI users. In August, Paytm requested NPCI to allow them to resume this process.
NPCI stressed that Paytm must comply with important laws like the Payments and Settlement Act of 2007, the Information Technology Act of 2000, and the Digital Personal Data Protection Act of 2023. Following these laws is crucial for Paytm to maintain the approval.
“We are pleased to inform that NPCI has granted permission for onboarding new users on our UPI platform, in line with all relevant guidelines,” Paytm announced in a regulatory filing.
This approval is a significant milestone for Paytm as it looks to expand its UPI user base after months of regulatory challenges.
