These Paytm Payment Bank services could continue to function beyond March 15 thanks to a scheme that NPCI may have

For the struggling Paytm, the National Payments Corporation of India (NPCI) may have some good news shortly. By March 15, the business is probably going to grant a third-party application provider (TPAP) license for Paytm, formerly known as One 97 Communications, according to an exclusive report by news agency Reuters. Three people who are personally aware of the development are cited in the study.

The Reserve Bank of India has allowed Paytm Payments Bank till March 15th. The date of March 15th, on which Paytm Payments Bank was given to cease operations, is not going to be extended by the central bank. This implies that Paytm Payments Bank will not be able to take any new deposits into its wallets or accounts after March 15.
What does Paytm Payments Bank’s third-party application provider license mean?
Even if the company’s banking division, Paytm Payments Bank, shuts down by March 15, users will still be able to use the Paytm app to make payments via India’s Unified Payment Interface (UPI) thanks to the third-party application provider license. The NPCI runs UPI, which enables consumers to transfer money between banks.
“The TPAP license approval will come before March 15,, and most of the checks have been completed,” according to a source. “While the integration with banks may take more than a month, the license approval should be in place before the deadline ends.”
According to sources, Paytm plans to handle UPI transactions in partnership with Axis Bank, HDFC Bank, the the State Bank of India, and Yes Bank.
According to statistics accessible on the NPCI website, Paytm, the third-largest UPI payment app in the nation, handled 1.41 billion monthly transactions worth 1.65 trillion rupees ($19.94 billion) in February, down from 1.57 billion transactions valued at 1.93 trillion in January.
In India, the two most popular UPI payment applications are PhonePe and Google Pay.
“Transaction volumes are anticipated to increase after the TPAP license is issued, according to one of the individuals. Paytm’s UPI transactions suffered in February, partly as a result of a setback to the brand’s image. “Paytm is regularly meeting NPCI to obtain the TPAP license.”