RBI on Paytm Issue: The Reserve Bank of India (RBI) on Friday directed the National Payments Corporation of India (NPCI) to consider Paytm’s proposal to become a third party app provider for UPI payments. Consider. Paytm in collaboration with Axis Bank has given this proposal to NPCI. If it gets the approval of NPCI, the regulator of UPI payments, then millions of customers will not face any inconvenience.
NPCI can make 5 banks payment service providers
According to RBI, @paytm handle is used by Paytm Payments Bank. The Reserve Bank said that customers using @paytm handle will be linked to other banks instead of Paytm Payments Bank without any problem. NPCI can make about 5 banks as payment service providers for this. Recently, RBI had clarified through FAQ that merchants will get the new QR code before March 15. This QR code will be linked to some other bank.
New users cannot be added on TPAP right now
Paytm’s parent company One97 Communications has applied to NPCI to become a Third Party Application Provider (TPAP). According to the rules, if it gets approval then it will be able to continue the UPI operation. As per RBI instructions, UPI customers should not face any inconvenience. The central bank said that new users will not be added on TPAP until all the old customers switch to the new handle.
Paytm Payments Bank was banned on January 31
RBI had banned Paytm Payments Bank from taking deposits on January 31. Earlier its deadline was 29th February. Later on 16 February it was extended to 15 March. Due to this restriction, Payments Bank cannot do any kind of deposit, credit transaction or top up. However, in the recently released FAQ, RBI had clarified that Paytm’s sound box, QR code and card machines will continue to operate without any problem.
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