Introduction: On March 14, 2024, the National Payments Corporation of India (NPCI) announced its approval for One97 Communications Limited (OCL) to become a Third-Party Application Provider (TPAP) under the multi-bank model for the Unified Payments Interface (UPI). This move marks a significant development in India’s digital payment landscape, with implications for both consumers and businesses.
Detailed Analysis:
1. Approval Process: NPCI’s decision to grant approval to OCL underscores the corporation’s commitment to fostering innovation and competition within India’s digital payment ecosystem. By allowing OCL to participate as a TPAP, NPCI is opening doors for new players to enter the market, potentially leading to increased innovation and improved services for consumers.
2. Participating Banks: Under the multi-bank model, OCL will collaborate with four major banks – Axis Bank, HDFC Bank, State Bank of India, and YES Bank – which will serve as Payment System Provider (PSP) banks. YES Bank, in addition to its role as a PSP bank, will also act as the merchant acquiring bank for both existing and new UPI merchants associated with OCL. This arrangement ensures a seamless transition for users and merchants, maintaining continuity in UPI transactions and AutoPay mandates.
3. Migration Process: OCL has been advised to expedite the migration of existing handles and mandates to the new PSP banks. This step is crucial to ensure minimal disruption to services and to facilitate a smooth transition for users and merchants. NPCI’s guidance in this regard highlights the importance of effective coordination and cooperation between stakeholders to uphold the integrity and efficiency of the UPI ecosystem.
Conclusion: The approval granted by NPCI to One97 Communications Limited represents a significant milestone in the evolution of India’s digital payment landscape. By fostering competition and innovation through the inclusion of new players like OCL, NPCI is poised to further enhance the accessibility, efficiency, and security of digital payments in the country. As India continues its journey towards becoming a digital economy, NPCI remains at the forefront, driving transformative changes and empowering millions with convenient, secure, and inclusive payment solutions.
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NATIONAL PAYMENTS CORPORATION OF INDIA
NPCI grants approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model
Mumbai, 14 March 2024: National Payments Corporation of India (NPCI) has today granted approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.
Four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Payment System Provider) banks to OCL. YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner.
OCL has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.
About NPCI:
National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created a robust payment and settlement infrastructure in the country. It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), Aadhaar Enabled Payment System (AePS), National Electronic Toll Collection (NETC) and Bharat BillPay.
NPCI is focused on bringing innovations in the retail payment systems through the use of technology and is relentlessly working to transform India into a digital economy. It is facilitating secure payment solutions with nationwide accessibility at minimal cost in furtherance of India’s aspiration to be a fully digital society.
