look news india
Mumbai: The Reserve Bank on Friday said it has directed NPCI to identify a third-party application provider to continue the UPI operations of the Paytm app. The central bank has banned Paytm Payments Bank from doing any transactions after March 15, 2024.
RBI has asked NPCI to identify 4-5 payment service provider banks that can handle higher volumes. NPCI has also been asked to review Paytm's appeal to become a third party payment app. The central bank said the request has been made by One97 Communications Ltd (OCL), which owns the Paytm brand.
RBI advised NPCI to transfer customers with @paytm handles to new banks. There will be a ban on adding new customers on Paytm until this process is completed. For this seamless migration, NPCI may certify certain banks as payment service providers that can handle high volume UPI transactions.
The central bank said One97 Communications can open settlement accounts with one or more banks for sellers using the Paytm QR code. But, Paytm Payments Bank will not be included in this.
The new rule of RBI will be applicable to consumers using @paytm UPI ID. FASTag and NCMC users have been advised to switch from Paytm to another platform by March 15, so that they do not face any problem.
