Paytm shares in focus today ahead of payments bank March 15 deadline. Here's why

Shares of One97 Communications (Paytm) will be in focus on Thursday morning as the Paytm parent reportedly formed partnership with State Bank of India (SBI), its fourth for its consumer UPI payments, ahead of the March 15 deadline for Paytm Payments Bank services.

As per reports, Paytm is looking to migrate UPI payments to four banks and is eyeing TPAP status before March 15. This would help Paytm settle UPI transactions once it gets the third-party app provider licence.

As per ET, The National Payments Corporation of India, which runs the UPI railroad, is working to certify Paytm’s application to become a third-party payment app. Business Today could not verify the reports independently.

Paytm's UPI ecosystem is dependent on Paytm Payments Bank (PPBL). As the Reserve Bank of India (RBI) imposed business restrictions on the payments bank, Paytm has been trying to enter into partnerships to become a third-party application provider (TPAP).

Paytm had partnered with Axis Bank, HDFC Bank and YES Bank for third-party application provider (TPAP) partnerships, Moneycontrol reported.

Paytm said its services such as the Paytm app, and merchant devices like Paytm QR, Soundbox and Card Machines would continue to work uninterrupted. It is expanding its financial services distribution platform in partnership with leading institutions.

Last month, One 97 Communications (OCL) shifted its nodal accounts or escrow accounts to private-sector lender Axis Bank, the company said in a filing to the BSE. This would ensure that merchants who accept digital payments through Paytm will be able to continue doing so even after the deadline ends on March 15.