Paytm can now onboard new users UPI, read NPCI's order

Paytm can now onboard new UPI users. After a nearly nine-month pause, the fintech giant has been granted approval by the National Payments Corporation of India ( NPCI ) to resume onboarding new users for its Unified Payments Interface (UPI) service.

The news comes after Paytm addressed regulatory concerns raised by the RBI earlier this year, which led to the suspension of new user registrations. In a late-night regulatory filing, Paytm confirmed receipt of a letter from NPCI dated October 22nd, 2024, granting the go-ahead for onboarding new UPI users.

The letter specifies that the approval is subject to Paytm's adherence to all NPCI procedural guidelines and circulars, including those related to risk management, brand guidelines for apps and QR codes, multi-bank partnerships, and market share regulations for third-party apps (TPAPs). Additionally, Paytm must comply with all applicable laws and data privacy regulations.



Read the order here

Dear Vijay,

Subject: Permitting One97 Communications Private Limited (OCL) to onboard new users on their UPI application

We acknowledge the receipt of your letter dated 1 Aug 2024 regarding your request to grant approval for onboarding new UPI users on Paytm app, which was stopped as per RBI directions dated 31" January 2024 and 16* February 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

Approval is subject to the following:

Adhere to and abide by all NPCI procedural guidelines and circulars issued from time to time (including guidelines and circulars issued specifically on Risk management, Brand guidelines for App and QR, Multi-bank guidelines, TPAP Market share and Customer data)

Adhere to the requirements outlined in the tri-partite agreement with NPCI and PSP Banks.

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.

Your’s truly,

Dilip Asbe

Managing director and CEO, NPCI


The NPCI approval comes as a significant boost for Paytm, which has seen its market share in the UPI space challenged by competitors during the onboarding freeze. Paytm's stock price surged over 11% on the Bombay Stock Exchange (BSE) following the announcement.