The Reserve Bank of India mentioned on Friday it has requested the National Payments Corporation of India (NPCI) to look at a request from Paytm, formally referred to as One 97 Communications, to turn into a 3rd occasion software supplier (TPAP).
If authorized, this may permit Paytm to proceed processing funds through India’s common unified funds interface (UPI), however will want a set of newly recognized banks to again the app.
The NPCI ought to facilitate 4 to 5 banks, with a capability to course of excessive volumes of UPI funds, to act as service suppliers to Paytm, the RBI mentioned of Friday.
“No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle,” the RBI mentioned.
Last month, the central financial institution requested Paytm Payments Bank, an affiliate of Paytm, to wind down its enterprise by March 15, main to disruption for the favored cost app, which used the banking unit on the again finish.
Paytm is the third largest app for UPI funds within the nation, processing 1.6 billion month-to-month transactions, in accordance to knowledge out there on the NPCI web site. PhonePe and Google Pay are the 2 largest.
To preserve Paytm QR codes working, the corporate might open settlement accounts with a number of banks, the RBI mentioned.
Paytm mentioned final week it had signed on Axis Bank to act as a banking associate.
© Thomson Reuters 2024
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