Paytm Payments Bank update: RBI announces more steps for UPI customers using @paytm handle. india business news
Paytm Payments Bank UPDATE: Reserve Bank of India (reserve Bank of India) has announced additional measures to ensure uninterrupted digital payment For UPI customer am using @paytm handleFollowing its decision that Paytm Payments Bank will stop accepting further credits to customer accounts and wallets after March 15, 2024.
These instructions apply exclusively to current @paytm UPI handle users, no action is required for those using a UPI address other than @paytm.
RBI has directed the National Payments Corporation of India (NPCI) to review the request of One97 Communication Ltd (OCL) to act as a Third-Party Application Provider (TPAP) for the UPI channel on the Paytm app. This move is in line with regulatory standards.
The possibility of NPCI granting TPAP status to OCL will require seamless transfer of @paytm handles from Paytm Payments Bank to a select group of newly identified banks, thereby avoiding any disruption.
To reduce concentration risk, RBI has directed NPCI to certify 4-5 banks as Payment Service Provider (PSP) banks capable of handling high volume UPI transactions.
Read this also Paytm Payments Bank crisis: RBI issues FAQs for customers – All queries answered on UPI, Fastag, Paytm Wallet; check full list
Merchants using the Paytm QR code can view settlement accounts opened with PSP banks other than Paytm Payments Bank, should the OCL take this course.
In brief, the additional steps listed by RBI are as follows:
These instructions apply exclusively to current @paytm UPI handle users, no action is required for those using a UPI address other than @paytm.
RBI has directed the National Payments Corporation of India (NPCI) to review the request of One97 Communication Ltd (OCL) to act as a Third-Party Application Provider (TPAP) for the UPI channel on the Paytm app. This move is in line with regulatory standards.
The possibility of NPCI granting TPAP status to OCL will require seamless transfer of @paytm handles from Paytm Payments Bank to a select group of newly identified banks, thereby avoiding any disruption.
To reduce concentration risk, RBI has directed NPCI to certify 4-5 banks as Payment Service Provider (PSP) banks capable of handling high volume UPI transactions.
Read this also Paytm Payments Bank crisis: RBI issues FAQs for customers – All queries answered on UPI, Fastag, Paytm Wallet; check full list
Merchants using the Paytm QR code can view settlement accounts opened with PSP banks other than Paytm Payments Bank, should the OCL take this course.
In brief, the additional steps listed by RBI are as follows:
- National Payments Corporation of India (NPCI) has been advised by RBI to examine the request of One97 Communication Limited (OCL) to become a Third-Party Application Provider (TPAP) for the UPI channel for continued UPI operations of Paytm App. Criteria.
- It is further advised that in the event of grant of TPAP status to OCL by NPCI, it may be stipulated that the ‘@paytm’ handle be shifted from Paytm Payments Bank to a group of newly identified banks to avoid any disruption. Must be transferred in a seamless manner. , No new user will be added by the said TPAP until all existing users are satisfactorily migrated to a new handle.
- For seamless transfer of ‘@paytm’ handles to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) banks with demonstrated capabilities to process high volume UPI transactions. This concentration is in line with NPCI norms to minimize risk1,
- For merchants using PayTM QR Code, OCL may open settlement accounts with one or more PSP banks (other than Paytm Payments Bank).
RBI has reiterated its stance that customers with accounts or wallets linked to Paytm Payments Bank should arrange for alternative banking arrangements before March 15, 2024.
Additionally, FASTag and National Common Mobility Card (NCMC) holders issued by Paytm Payments Bank are advised to find alternative solutions before the above date.
As RBI said in its press release, these measures are solely aimed at protecting customers and the payments system from potential disruptions and are independent of any regulatory or supervisory action initiated against Paytm Payments Bank.
