RBI Directed NPCI To Assist Paytm UPI Operations

Image Courtesy: Reuters

New Delhi: On Friday, the Reserve Bank of India (RBI) announced that it has directed the National Payments Corporation of India (NPCI) to look into the possibility of allowing Paytm to continue its UPI operations through a third-party application provider (TPAP) arrangement.

Restriction On Paytm Payments Bank

Starting March 15, 2024, Paytm Payments Bank will not be allowed to accept any further credits into its customer accounts and wallets, as per the directive from the RBI. ()

Request For UPI Operations

To ensure uninterrupted digital payments through the '@paytm' handle operated by Paytm Payments Bank, the RBI has requested NPCI to consider allowing One97 Communication Ltd (OCL), the owner of the Paytm brand, to become a TPAP for the UPI channel. ()

Migration To Other Banks

RBI has also instructed NPCI to facilitate the smooth transition of the '@paytm' handle to other banks. To achieve this, NPCI may certify 4-5 banks as Payment Service Provider (PSP) Banks, ensuring they have the necessary capabilities to handle high volumes of UPI transactions.

(With PTI Inputs)