Paytm’s parent company, One97 Communications Ltd, has received approval from the National Payments Corporation of India (NPCI) to resume onboarding new UPI users. The approval, confirmed in a letter dated October 22, is contingent on compliance with procedural guidelines and circulars issued by NPCI.
The NPCI’s nod comes after One97 Communications requested permission in August to onboard new users, a process halted earlier this year due to directives from the Reserve Bank of India. Paytm’s ability to bring in new UPI users was paused following RBI’s instructions in January and February 2024.
In its letter, NPCI emphasized that Paytm must adhere to various requirements, including risk management procedures, multi-bank guidelines, and data protection rules. The company will also need to follow legal frameworks such as the Payments and Settlement Act of 2007, the Information Technology Act of 2000, and the Digital Personal Data Protection Act of 2023. Compliance with these and other regulations is essential for the continuation of 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 shared in a regulatory filing.
This approval is a significant step for Paytm as it works to expand its UPI user base once again, following months of regulatory scrutiny.