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Synopsis : Paytm's parent company migrates merchants to YES Bank, complying with NPCI, and welcomes RBI's PA regulations, ensuring compliance and independence.
One97 Communications (OCL), the parent company of Paytm, recently finalized the transition of its merchant handles to YES Bank, in accordance with the National Payments Corporation of India’s (NPCI) directive. This significant move was disclosed by Vijay Shekhar Sharma, the founder and managing director of the company, during a webinar. Notably, this announcement coincided with the introduction of two new soundbox devices by the company, aimed at facilitating unified payments interface (UPI) and Credit Card on UPI transactions.
Sharma elaborated that the migration process has been successfully completed, with the backend operations now running seamlessly on YES Bank's infrastructure. Furthermore, he emphasized that YES Bank has the autonomy to determine which merchants require additional Know Your Customer (KYC) verifications, thereby streamlining the compliance process.
The decision to migrate to YES Bank was prompted by the NPCI's notification in March, designating YES Bank as the merchant acquiring bank for both existing and new UPI merchants of OCL. Consequently, alongside YES Bank, Axis Bank, HDFC Bank, and State Bank of India now serve as Payment System Provider (PSP) banks for OCL.
Sharma also expressed his approval of the Reserve Bank of India's (RBI) draft regulations concerning payment aggregators (PAs). These regulations aim to standardize the KYC procedures for small and medium-sized merchants, a move Sharma believes will enhance the overall onboarding process. He highlighted the significance of this standardization, as it will ensure uniformity across various payment aggregators, thereby simplifying merchant acquisition processes in the future.
Addressing queries regarding the future of Paytm Payments Bank (PB), Sharma reiterated the independence of the bank's board in handling regulatory matters. He emphasized that neither he nor anyone at OCL has any direct involvement with the operations of Paytm Payments Bank, underscoring the autonomy and competency of its independent board. This reassurance underscores OCL's commitment to regulatory compliance and its dedication to maintaining the integrity and independence of its subsidiaries.
