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MUMBAI: One97 Communications is likely to partner SBI, HDFC Bank, Axis Bank and Yes Bank to settle UPI transactions once it gets the third-party app provider licence.
Banking sources said that the switchover will be smooth and phased, as the @paytm handle will be retained. However, instead of pointing to PPBL, these handles will point to one of the four banks for settlement.
Sources said that PPBL’s system would also continue to function after March 15 as customers would be able to operate their accounts for withdrawal, and the bank would have to continue providing UPI services to facilitate withdrawal.
“Unlike in the case of Yes Bank in March 2020, there is no pressure as PPBL has to remain operational because of RBI directions,” said a senior banker. He added that the transfer of settlement to the four banks would happen in phases, and once One97 Communications is allowed to onboard customers with a new TPAP licence, it will have to provide a new handle.
On the merchant side, those who have a current account with PPBL are being individually migrated to other banks. The firm has already opened a nodal account with Axis Bank and will open accounts with other banks soon.
Banking sources said that the switchover will be smooth and phased, as the @paytm handle will be retained. However, instead of pointing to PPBL, these handles will point to one of the four banks for settlement.
Sources said that PPBL’s system would also continue to function after March 15 as customers would be able to operate their accounts for withdrawal, and the bank would have to continue providing UPI services to facilitate withdrawal.
“Unlike in the case of Yes Bank in March 2020, there is no pressure as PPBL has to remain operational because of RBI directions,” said a senior banker. He added that the transfer of settlement to the four banks would happen in phases, and once One97 Communications is allowed to onboard customers with a new TPAP licence, it will have to provide a new handle.
On the merchant side, those who have a current account with PPBL are being individually migrated to other banks. The firm has already opened a nodal account with Axis Bank and will open accounts with other banks soon.
