Are you worried about making UPI payments on the Paytm app, after the latest orders from the banking authorities? However, customers can heave a sigh of relief as unified payments interface (UPI) payments will not be affected through any of the latest directives.
In its latest order, the Reserve Bank of India (RBI) advised the National Payments Corporation of India (NPCI) on Friday, February 23, to examine Paytm’s request to become a third-party application provider for UPI payments.
“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,” said the central bank.
If approved, this would allow Paytm to continue processing payments via UPI, but will need a set of newly identified banks to back the app. The NPCI should facilitate four to five banks, with an ability to process high volumes of UPI payments, to act as service providers to Paytm, the RBI said of Friday.
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.
Paytm is the third largest app for UPI payments in the country, processing 1.6 billion monthly transactions, according to data available on the NPCI website. PhonePe and Google Pay are the two largest.
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Published: 23 Feb 2024, 06:43 PM IST