Given the Paytm Payments Bank will not be able to accept further credits into customer accounts and wallets after March 15, 2024, the Reserve Bank of India on Friday took more steps to ensure seamless digital payments by UPI customers using @paytm handle.
These measures will be applicable only to customers and merchants that currently have an @paytm UPI handle. If you have an UPI address that is other than @paytm, no action needs to be taken.
“National Payments Corporation of India (NPCI) has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms,” RBI said.
RBI has advised that if NPCI grants TPAP status to OCL, @paytm handles have to be migrated in a seamless manner from Paytm Payments Bank to to a set of newly identified banks to avoid any disruption.
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The NPCI has been asked to facilitiate the certification of 4-5 banks as Payment Service Provider (PSP) banks that have shown capabilities to handle high volume UPI transactions. RBI has said these norms will help minimise concentration risk.
If you are a merchant that uses Paytm QR codes, OCL may open settlement accounts with one or more PSP banks. These banks will be those other than Paytm Payments Bank.
The RBI has once again reiterated that customers with underlying account or wallet with Paytm Payments Bank should make alternative arrangements with other banks well before March 15, 2024.
Further, holders of FASTag and National Common Mobility Cards (NCMC) which have been issued by Paytm Payments Bank are also advised to make alternate arrangements before March 15, 2024.
“All the above actions are undertaken in the sole interest of protecting the customers and payment system from any possible disruptions and are without any prejudice to the regulatory or supervisory actions initiated by RBI against Paytm Payments Bank,” RBI said in its press release.
