New Delhi, Feb 23 (UNI) The Reserve Bank of India (RBI) has advised National Payments Corporation of India (NPCI) to examine the request of Paytm to become a Third-Party Application Provider (TPAP) for UPI channel so that UPI operation can continue on the Paytm app.
“It has been further advised that in the event of NPCI granting TPAP status to OCL (One97 Communication Ltd), it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle,” the RBI said in a media release on Friday.
The RBI further said that for seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions.
One97 Communication Ltd or OCL is the parent company of Paytm.
Acting against non-compliance of banking rules, the RBI had last month barred Paytm Payments bank from accepting deposits or credit transactions or top-ups in any customer accounts or any prepaid instruments such as wallets and FASTags.
The regulatory action impacted Paytm app which is used by millions for small ticket transactions.
In its media release today, the RBI reiterated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, may make alternative arrangements before March 15, 2024 to avoid any inconvenience.
