One97 Communications Ltd, the company that owns Paytm, was given permission by the National Payments Corporation of India on Thursday to take part in UPI as a Third-Party Application Provider (TPAP) in the multi-bank model.

As Paytm's Payment System Provider (PSP) banks, Axis Bank, HDFC Bank, State Bank of India, and YES Bank will participate.

For One97 Communications Ltd. (OCL), YES Bank will also serve as a merchant acquiring bank for both new and current UPI merchants. The @Paytm handle will be sent to YES Bank, according to a statement from the NPCI.

One97 Communications Limited (OCL) has been approved by NPCI to take part in UPI as a Third-Party Application Provider (TPAP) in the multi-bank model. OCL uses the Paytm brand to offer payment services.

"This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner," it stated.

It has been recommended that Paytm finish migrating all of its current handles and mandates - where necessary - to new PSP banks as soon as possible.

The Reserve Bank has set a deadline of March 15 for consumers and merchants of Paytm Payments Bank Ltd (PPBL) to move their accounts to other banks. The NPCI made its judgment one day early.