Considering that Paytm Payments Bank will not be able to accept further deposits into their customers’ accounts post 15th March, the Reserve Bank announced further steps to ensure seamless digital payments by UPI customers using ‘@paytm’ handle. In an official press release on Friday, RBI has informed that National Payments Corporation of India, NPCI has been asked to examine the request made by One97 Communication Limited to become a Third-Party Application Provider to ensure continued UPI operation of the Paytm app.
National Payments Corporation of India will have to further ensure that all ‘@paytm’ handles are migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. For this purpose, NPCI may facilitate certification of 4-5 banks as Payment Service Provider Banks with demonstrated capabilities to process high volume UPI transactions. Additionally, for merchants using PayTM QR Codes, One97 Communication Limited will be required to open settlement accounts with one or more Payment Service Provider Banks.
RBI has clarified that no action is required by customers, having UPI address or handle other than ‘@Paytm’.
RBI has reiterated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, may make alternative arrangements before March 15th, 2024 to avoid any inconvenience. Similarly, customers having an underlying account or wallet with Paytm Payments Bank must make alternative arrangements with other banks well before March 15, 2024.
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