The Reserve Bank of India (RBI), on February 23, issued a press release stating that it has advised the National Payments Corporation of India (NPCI), which operates UPI, to examine Paytm's request to become a UPI service provider. The app had earlier relied on the license held by Paytm Payments Bank to provide UPI services. The RBI also advised NPCI to allow Paytm to migrate customers with the @paytm UPI handle from Paytm Payments Bank to other banks. This advice comes after the central bank placed wide-ranging restrictions on Paytm Payments Bank last month, effectively disallowing it from providing any banking or UPI services. Since these restrictions created uncertainty for Paytm customers and merchants, the RBI subsequently issued clarifications in the form of frequently asked questions (FAQs). However, these FAQs did not address the status of @paytm UPI handles, which the central bank has now addressed. To allow Paytm to continue providing Unified Payments Interface (UPI) services, the central bank has stated that the NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) banks with demonstrated capabilities to process high-volume UPI transactions. However, Paytm is instructed not to add any new users until all existing users are satisfactorily migrated from @paytm to a new handle. This development should come as a huge relief to Paytm, as it provides customers and merchants with some assurance that Paytm UPI services will likely continue as usual. The RBI stated that it has made the above decisions to ensure seamless digital…
News
RBI allows Paytm to migrate @paytm UPI users to other banks once NPCI gives approval
This should come as a huge relief to Paytm as it provides customers and merchants with some assurance that UPI services will continue as usual.
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...