RBI asks NPCI to help continue operations of Paytm app

Mumbai, February 23

The Reserve Bank of India (RBI) on Friday said National Payments Corporation of India (NPCI) has been asked to examine the possibility of it becoming a third party application provider for continued UPI operations of the Paytm app.

The central bank has barred Paytm Payments Bank from accepting further credits into its customer accounts and wallets after March 15.

With an aim to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by Paytm Payments Bank, RBI said it has asked NPCI to examine the request to become a third-party application provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.

The request has been made by One97 Communication Ltd (OCL), which owns the Paytm brand, RBI said in a statement.

For seamless migration of ‘@paytm’ handle to other banks, RBI said NPCI may facilitate certification of four to five banks as payment service provider (PSP) banks with demonstrated capabilities to process high volume UPI transactions.