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Indian digital payments company Paytm said on Monday that Vijay Shekhar Sharma would step down as non-executive chairman and board member of its payments bank, as the troubled company overhauls its board of directors. following a crackdown by the central bank.
Paytm is likely to partner with four banks to enable UPI transactions, according to sources
TroubledPaytm is likely to partner with Axis Bank, HDFC Bank, National Bank of India and Yes Bank for processing transactions through the popular Unified Payments Interface (UPI), two sources aware of the development said.
The central bank has asked Paytm Payments Bank, Paytm’s banking unit, to shut down its operations by March 15, leading to disruptions for the popular payments app.
UPI is India’s real-time payments system, operated by the National Payments Corporation of India (NPCI), which allows users to transfer money between banks.
The Reserve Bank of India (RBI) last week asked the NPCI to consider an application by Paytm to become a third-party application provider and allow four or five banks to act as service providers for it. -this.
“Discussions with integrated banking partners are ongoing and Paytm wants to start this process with large banks that have the technology bandwidth to handle large volumes seamlessly,” one of the sources said.
The people did not wish to be identified because they are not authorized to speak to the media.
HDFC Bank, Yes Bank, SBI, Pay did not immediately respond to emails from Reuters seeking comment. Spokespeople for Axis Bank and NPCI declined to comment.
“Paytm is likely to first on-board Axis Bank as a banking partner and then on-board more banks,” the second source said.
It will take about a month for NPCI to verify the bank’s technology and associated infrastructure, the source said.
Paytm is the third largest UPI payments app in the country, processing 1.6 billion monthly transactions, according to data available on the NPCI website. PhonePe and Google Pay are the two biggest.
Paytm users will migrate to an updated UPI ID of the partner bank, the second person said.
“Any dealings with Paytm will only take place in accordance with the regulatory orders of RBI,” Prashant Kumar, managing director of Yes Bank, said in an earlier interview on Monday.
“If the risks involved are clear and the activity makes commercial sense for us, we have the capabilities.”
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