According to reports, in a move that is expected to come as a relief to Paytm, the National Payments Corporation of India (NPCI) has approved the company to onboard new UPI users, subject to observance to all procedural guidelines and circulars.

According to the company, they would like to inform you that vide letter dated October 22, 2024, the National Payments Corporation of India (NPCI) has approved for the company to onboard new UPI users, with adherence to all NPCI procedural guidelines and circulars.

Reports suggest that the permission is subject to adherence to all NPCI procedural guidelines and circulars issued from time to time, including policies and circulars issued specifically on risk management, brand guidelines for app and QR, multi-bank guidelines, TPAP Market share, and customer data.

The company must also comply with the requirements outlined in the tripartite agreement with NPCI and PSP Bank.

The letter by NPCI addresses to Vijay Shekhar Sharma, founder and CEO of One97 Communications goes like this, “Adhere to all laws and regulatory guidelines as applicable and issued from time to time including Payments and Settlement Act 2007, Information Technology Act, 2000, Digital Personal Data Protection Act, 2023 and circular on Storage of Payment System Data, 2018.”

NPCI noted that while allowing One97 Communications Private Limited (OCL) to onboard new users to its UPI app, it has received a letter dated August 1, 2024, from the company seeking approval to onboard new users to the Paytm app, which was suspended under the RBI's directions dated January 31, 2024, and February 16, 2024.

"Upon examination of your request, we hereby accord our approval and permit One97 Communications Private Limited (OCL) to onboard new users on their UPI application,” the Paytm filing says.