RBI asks NPCI to ensure seamless migration for UPI users Of Paytm Payments Bank

  • IANS
  • Stock Market News
RBI asks NPCI to ensure seamless migration for UPI users Of Paytm Payments Bank
Credit: © Reuters.

New Delhi, Feb 23 (IANS) The Reserve Bank of India (RBI) on Friday asked the National Payments Corporation of India (NPCI) to ensure alternative arrangements for customers using the Unified Payments Interface of Paytm (NS: PAYT ) Payments Bank Ltd (PPBL) so that '@paytm' handles can be migrated in a seamless manner.

The central bank advised that in the event of NPCI granting Third Party Application Provider (TPAP) status to One97 Communication Ltd (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," said the RBI.

NPCI may facilitate certification of 4-5 banks as the payment service provider that are capable of processing high volumes of UPI transactions, it added.

The bank said that as the Paytm Payments Bank cannot accept further credits into its customer accounts and wallets after March 15, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using '@paytm' handle operated by the Paytm Payments Bank, and "minimise concentration risk in the UPI system by having multiple payment app providers".

For the merchants using PayTM QR Codes, OCL may open the settlement accounts with one or more PSP Banks (other than Paytm Payments Bank).

"It is reiterated 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," said the RBI.

--IANS

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