RBI moves to ensure UPI transactions on Paytm continue to function after tightening Paytm Payments Bank

The Reserve Bank of India said on Friday that it hasNPCI) to test the application PaytmOfficially known as One 97 Communications, to become a Third Party Application Provider (TPAP).

If approved, it will allow Paytm to continue processing payments through India’s popular unified payments interface.UPI), but the app will need a set of newly identified banks to back it up.

NPCI should facilitate four to five banks, which have the capacity to process high volumes of UPI payments, to act as service providers to Paytm. RBI Said about Friday.

“No new customer shall be added through the said TPAP until all existing customers are satisfactorily migrated to a new handle,” RBI said.

Last month, the central bank asked Paytm’s partner, Paytm Payments Bank, to wind down its business by March 15, creating a disruption for the popular payments app, which used a back-end banking unit.

Paytm is the third largest app for UPI payments in the country, processing 1.6 billion monthly transactions, according to data available on the NPCI website. Phone p And Google Pay Two are the largest.

RBI said that to continue Paytm QR codes, the company can open settlement accounts with one or more banks.

Paytm said last week it had signed Axis Bank to act as a banking partner.

© Thomson Reuters 2024

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