Paytm Payments Bank replace: The Reserve Bank of India (RBI) has introduced further measures to make sure uninterrupted digital funds for UPI customers using the @paytm handle, following its determination that Paytm Payments Bank will halt accepting additional credit into buyer accounts and wallets after March 15, 2024.
These directives apply solely to present @paytm UPI handle customers, with no motion required for these using UPI addresses aside from @paytm.
RBI has instructed the National Payments Corporation of India (NPCI) to assessment One97 Communication Ltd (OCL) request to function as a Third-Party Application Provider (TPAP) for the UPI channel on the Paytm app. This transfer aligns with regulatory requirements.
NPCI’s potential granting of TPAP standing to OCL would necessitate the seamless migration of @paytm handles from Paytm Payments Bank to a choose group of newly recognized banks, stopping any disruption.
In order to mitigate focus threat, RBI has directed NPCI to certify 4-5 banks as Payment Service Provider (PSP) banks able to dealing with high-volume UPI transactions.
Also Read | Paytm Payments Bank disaster: RBI releases FAQs for customers – all queries on UPI, FASTag, Paytm pockets answered; examine full checklist
Merchants using Paytm QR codes may even see settlement accounts opened with PSP banks aside from Paytm Payments Bank, ought to OCL pursue this course.
To sum up, the extra steps, as listed by RBI are as follows:
These directives apply solely to present @paytm UPI handle customers, with no motion required for these using UPI addresses aside from @paytm.
RBI has instructed the National Payments Corporation of India (NPCI) to assessment One97 Communication Ltd (OCL) request to function as a Third-Party Application Provider (TPAP) for the UPI channel on the Paytm app. This transfer aligns with regulatory requirements.
NPCI’s potential granting of TPAP standing to OCL would necessitate the seamless migration of @paytm handles from Paytm Payments Bank to a choose group of newly recognized banks, stopping any disruption.
In order to mitigate focus threat, RBI has directed NPCI to certify 4-5 banks as Payment Service Provider (PSP) banks able to dealing with high-volume UPI transactions.
Also Read | Paytm Payments Bank disaster: RBI releases FAQs for customers – all queries on UPI, FASTag, Paytm pockets answered; examine full checklist
Merchants using Paytm QR codes may even see settlement accounts opened with PSP banks aside from Paytm Payments Bank, ought to OCL pursue this course.
To sum up, the extra steps, as listed by RBI are as follows:
- National Payments Corporation of India (NPCI) has been suggested by the RBI to look at the request of One97 Communication Ltd (OCL) to turn out to be a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms.
- It has been additional suggested that within the occasion of NPCI granting TPAP standing to OCL, it might be stipulated that ‘@paytm’ handles are to be migrated in a seamless method from Paytm Payments Bank to a set of newly recognized banks to keep away from any disruption. No new customers are to be added by the stated TPAP till all the present customers are migrated satisfactorily to a brand new handle.
- For seamless migration of ‘@paytm’ handle to different banks, NPCI might facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to course of excessive quantity UPI transactions. This is according to NPCI norms for minimising focus risk1.
- For the retailers using PayTM QR Codes, OCL might open the settlement accounts with one or more PSP Banks (aside from Paytm Payments Bank).
RBI reiterates its stance that customers with accounts or wallets linked to Paytm Payments Bank ought to prepare various banking preparations nicely prematurely of March 15, 2024.
Additionally, holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank are suggested to hunt various options earlier than the aforementioned date.
These measures, as acknowledged by RBI in its press launch, are solely aimed toward safeguarding customers and the fee system towards potential disruptions and are impartial of any regulatory or supervisory actions initiated towards Paytm Payments Bank.
