Reserve Bank of India (RBI) has asked National Payments Corporation of India (NPCI) to examine the possibility of it becoming a third-party application provider for continued UPI operations of the Paytm app. The request has been made by One97 Communication Ltd (OCL), which owns the Paytm brand, RBI said in a statement.
The central bank has barred Paytm Payments Bank from accepting further credits into its customer accounts and wallets after March 15, 2024. For seamless migration of '@paytm' handle to other banks, RBI said NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high-volume UPI transactions.
With an aim to ensure seamless digital payments by UPI customers using '@paytm' handle operated by the Paytm Payments Bank, RBI said it has asked NPCI to examine the request to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.
"It has been further advised that in the event of NPCI granting TPAP status to OCL, 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," it said in a statement.
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