PSP Bank (Payment System Provider bank)

The bank that sponsors a TPAP onto UPI: it holds the technical and settlement link to NPCI on the app's behalf.

Definition

Payment System Provider bank – The bank that sponsors a TPAP» onto UPI»: it holds the technical and settlement link to NPCI» on the app's behalf. An app that depends on only a few PSP banks inherits their outages and any change in the commercial terms they ask for. Found In: Risk factors (dependence on sponsor banks)