RBI asks NPCI to consider Paytm request to become third party app provider
Upstox
1 min read • Updated: February 23, 2024, 5:20 PM
Summary
The Reserve Bank of India has asked the National Payments Corporation of India to examine Paytm’s request to become a third-party application provider.
The Reserve Bank of India said on Friday it has asked the National Payments Corporation of India to examine a request from One97 Communications, the parent company of Paytm, to become a third-party application provider (TPAP).
If approved, this would allow Paytm to continue processing payments via India's popular unified payments interface.
On January 31, the central bank asked Paytm Payments Bank, an associate of Paytm, to shut down its business by March 15. This led to a disruption for the popular payment app, which used the banking unit at the back end.
The RBI has asked NPCI to facilitate the certification of 4-5 banks as Payment Service Provider (PSP) Banks for seamless migration of the ‘@paytm’ handle to other banks.
"No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle," the RBI said.
The RBI reiterated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, may make alternative arrangements before March 15 to avoid any inconvenience.
Meanwhile, shares of Paytm were locked in the 5% upper circuit on Friday at ₹407.75 per share.