NPCI to examine Paytm's third-party app request for UPI: RBI - Hindustan Times
close_game
close_game

NPCI to examine Paytm's third-party app request for UPI: RBI

Feb 23, 2024 06:17 PM IST

Following RBI's crackdown against Paytm Payments Bank, Paytm is looking to partner with external banks to ensure continuation of its UPI services.

The Reserve Bank of India (RBI) on Friday said it has advised National Payments Corporation of India (NPCI) to examine One97 Communication Limited's request seeking approval for the Third-Party Application Provider (TPAP) route for continuation of Paytm's Unified Payments Interface (UPI) services.

Paytm Payments Bank cannot onboard new customers after March 15 (File Photo/Reuters)
Paytm Payments Bank cannot onboard new customers after March 15 (File Photo/Reuters)

Also Read: Why is RBI so cranky about fintech firms after Paytm crisis?

One97 Communication Limited is the parent firm of fintech major Paytm. On January 31, RBI issued a set of directions against Paytm Payments Bank, Paytm's banking arm, citing ‘persistent non-compliances.’ These include a ban on adding new customers after February 29, a deadline which was later extended to March 15.

Unlock exclusive access to the story of India's general elections, only on the HT App. Download Now!

Following this, One97 began looking for partnerships with external banks to ensure continuation of Paytm's UPI. The company has already partnered with Axis Bank to settle merchant payments, and is holding discussions with a few other lenders too.

Also Read: Amid Paytm banks crackdown, Uday Kotak says ‘RBI knows better than you and I’

‘It has been further advised…’

If NPCI grants TPAP status, then, to avoid disruptions, ‘@paytm’ handles must be migrated from Paytm Payments Bank to a set of newly identified banks in a ‘seamless’ manner, RBI said.

Also Read: Users ditch Paytm? App's daily downloads declined this much since February 1

Also, the third-party app must not add new users until the existing ones have been migrated ‘satisfactorily’ to the new handle, it added.

The central bank further stated that for seamless migration, NPCI can consider certifying up to five banks as ‘Payment Service Provider (PSP)’ Banks with ‘demonstrated capabilities to process high-volume UPI transactions.’

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Sunday, April 14, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On