One97 Communications (OCL), the parent company of Paytm, has received approval from the National Payments Corporation of India (NPCI) to onboard new UPI users, marking the end of a nine-month embargo imposed by the Reserve Bank of India (RBI). This development is seen as a major relief for the fintech company, which had faced restrictions on adding new UPI customers since January 2024.
In a letter to Paytm’s founder and CEO, Vijay Shekhar Sharma, NPCI’s Chief Dilip Asbe confirmed the approval, allowing the Noida-based company to resume onboarding under NPCI’s procedural guidelines and agreements with Payment Service Provider (PSP) banks.
Paytm stated in a regulatory filing on October 22, 2024, ‘We would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has granted approval to the Company to on-board new UPI users, with adherence to all NPCI procedural guidelines and circulars.’
This nod comes at a crucial time for Paytm, as the restrictions imposed earlier this year led to a significant drop in its UPI market share. The company is expected to see a rise in UPI transaction volumes as it begins adding new users again.
