‘NPCI to approve Paytm request for third-party utility license this week’

NEW DELHI: The Nationwide Funds Corp of India (NPCI) is predicted to grant a third-party utility supplier (TPAP) license to Paytm, formally acknowledged as One 97 Communications, by March 15, Reuters reported, quoting three sources on Tuesday.Affect on clients and compliance issuesThis license will allow customers to proceed using the Paytm app for transactions by way of the unified fee interface (UPI) regardless of the upcoming halt in operations of its banking division, Paytm Funds Financial institution, by the identical date resulting from regulatory considerations over non-compliance.Understanding UPI and licensing processUPI, managed by the NPCI, facilitates real-time monetary transactions throughout totally different banks in India. Sources point out that the TPAP license’s approval is anticipated earlier than March 15, with most prerequisite evaluations already full. They famous, nonetheless, that integrating with banks may prolong past a month, however the license needs to be authorized by the deadline.Confidentiality and business responsesThe identities of the sources stay undisclosed as they aren’t cleared for media interplay. Responses from NPCI and Paytm to inquiries on the matter are pending.Paytm’s UPI operations and partnershipsReported declines in Paytm’s UPI transaction volumes in February are attributed to damages to the model’s fame. Nonetheless, transactions are anticipated to rebound following the license approval. Paytm is purportedly in talks to associate with distinguished Indian banks similar to Axis Financial institution, HDFC Financial institution, State Financial institution of India, and Sure Financial institution for UPI transaction processing.Regulatory deadlines and restrictionsSources counsel that the Reserve Financial institution of India (RBI) shouldn’t be inclined to postpone the March 15 deadline for Paytm Funds Financial institution to stop its capabilities. Submit-deadline, the financial institution might be barred from accepting new deposits into accounts or wallets.(With inputs from businesses)

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