Mumbai (Maharashtra): The Reserve Bank of India (RBI) on Friday directed the UPI watchdog, the National Payments Corporation of India (NPCI) to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for the UPI channel for continued UPI operation of the Paytm app.
"National Payments Corporation of India (NPCI) has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for the UPI channel for continued UPI operation of the Paytm app, as per the norms," the RBI said in the statement.
The Central Bank further stated 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, and no new users are to be added by the said TPAP until all the existing users are satisfactorily migrated to a new handle."
RBI also advised NPCI to facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions for seamless migration of '@paytm' handles to other banks.
"This is in line with NPCI norms for minimising concentration risk," RBI said.
As per the Central bank's release, for merchants using PayTM QR codes, One97 Communication Ltd may open settlement accounts with one or more PSP Banks (other than Paytm Payments Bank).
"The migration of UPI handles as above is applicable only to such customers and merchants who have a UPI handle '@Paytm'. For others who have a UPI address or handle other than '@Paytm', no action is required to be taken by them," RBI further clarified.
"Similarly, the customers, whose underlying account/ wallet is currently with Paytm Payments Bank, are advised to make alternative arrangement with other banks well before March 15, 2024, as already advised," it added.
RBI further informed 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.
National Payments Corporation of India (NPCI), is an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment and Settlement Infrastructure in India.
