RBI announces more steps for Paytm UPI customers

According to the central bank's notification, National Payments Corporation of India (NPCI) has been asked to examine the use of UPI channel to allow Paytm to continue operations.

Hyderabad: The Reserve Bank of India (RBI) on Friday announced additional measures to ensure uninterrupted transactions for Paytm UPI customers who are utilising “@paytm” handle. The announcement of additional steps comes after the RBI decided that Paytm Payments Bank will halt accepting further credits into customers’ wallets and accounts after March 15, 2024.

According to the central bank’s notification, National Payments Corporation of India (NPCI) has been asked to examine the use of UPI channel to allow Paytm to continue operations.

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“National Payments Corporation of India has been advised by the RBI to review the request of One97 Communication Ltd (OCL) to facilitate Paytm’s UPI channel as a Third-Party Application Provider (TPAP) for continued operations on the app,” RBI said in a statement.

It further advised that if the NPCI grants the TPAP status to OCL, it may be stipulated that ‘@paytm’ handles will be migrated in a seamless manner from the Paytm Payments Bank.

Meanwhile, no new users are to be added by the TPAP until the existing users are migrated to a new handle, the RBI advised.  The central bank also suggested that the NPCI could facilitate certification of 4-5 banks with certified capabilities as Payment Service Providers (PSP) to process the high volume transactions on UPI.