The Reserve Bank of India (RBI) on Friday asked National Payments Corporation of India (NPCI) to look at use of UPI channel to permit Paytm App to continue operations and facilitate migration of @paytm handles to 4-5 banks.
RBI requested NPCI to look at the likelihood of it changing into a 3rd celebration utility supplier for continued UPI operations of the Paytm app.
The central financial institution has barred Paytm Payments Bank from accepting additional credit into its buyer accounts and wallets after March 15, 2024.
With an goal to guarantee seamless digital funds by UPI clients utilizing ‘@paytm’ deal with operated by the Paytm Payments Bank, RBI mentioned it has requested the National Payments Corporation of India (NPCI) to look at the request to change into a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.
The request has been made by One97 Communication Ltd (OCL), which owns the Paytm model, RBI mentioned in an announcement.
For seamless migration of ‘@paytm’ deal with to different banks, the Reserve Bank of India (RBI) mentioned NPCI could facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to course of excessive quantity UPI transactions.
RBI’s motion in opposition to Paytm was taken after a Comprehensive System Audit report and subsequent compliance validation report of the exterior auditors revealed persistent non-compliances and continued materials supervisory considerations within the financial institution, warranting additional supervisory motion.
The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated on the earliest, in accordance to the order.
Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or earlier than February 29, 2024) shall be accomplished by March 15, 2024 and no additional transactions shall be permitted thereafter, the order additional states.
With inputs from companies
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