RBI Strikes to Guarantee UPI Transactions on Paytm Proceed to Work After Strictures on Paytm Funds Financial institution

Paytm Shifts Nodal Account to Axis Bank, RBI Extends Unit Wind-Down Date to March 15

The Reserve Financial institution of India mentioned on Friday it has requested the Nationwide Funds Company of India (NPCI) to look at a request from Paytm, formally referred to as One 97 Communications, to develop into a 3rd social gathering utility supplier (TPAP).

If accepted, this may enable Paytm to proceed processing funds by way of India’s standard unified funds interface (UPI), however will want a set of newly recognized banks to again the app.

The NPCI ought to facilitate 4 to 5 banks, with a capability to course of excessive volumes of UPI funds, to behave as service suppliers to Paytm, the RBI mentioned of Friday.

“No new customers are to be added by the mentioned TPAP till all the prevailing customers are migrated satisfactorily to a brand new deal with,” the RBI mentioned.

Final month, the central financial institution requested Paytm Funds Financial institution, an affiliate of Paytm, to wind down its enterprise by March 15, resulting in disruption for the favored fee app, which used the banking unit on the again finish.

Paytm is the third largest app for UPI funds within the nation, processing 1.6 billion month-to-month transactions, in response to information out there on the NPCI web site. PhonePe and Google Pay are the 2 largest.

To maintain Paytm QR codes working, the corporate could open settlement accounts with a number of banks, the RBI mentioned.

Paytm mentioned final week it had signed on Axis Financial institution to behave as a banking companion.

© Thomson Reuters 2024

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