RBI directs NPCI to examine Paytm’s request for being third-party app for UPI

“National Payments Corporation of India (NPCI) has been advised by the RBI to examine the request of One97 Communication to become a third-party application provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms,” the central bank said in a statement on Friday (February 23).

According to the RBI, the directive has been issued 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.

“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.

On January 31, the central bank had imposed major business restrictions on PPBL, including a restriction on accepting fresh deposits and doing credit transactions after February 29. On February 16, it extended the deadline to March 15.

This is a developign story. Kindly check back for more updates.

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Published: 23 Feb 2024, 04:38 PM IST