RBI Directs NPCI to Explore Continuity of UPI Operations for Paytm App

The Reserve Bank of India (RBI) has directed the National Payments Corporation of India (NPCI) to explore the possibility of becoming a third-party application provider (TPAP) for the continued Unified Payments Interface (UPI) operations of the Paytm app. This decision comes after the RBI barred Paytm Payments Bank from accepting further credits into its customer accounts and wallets after March 15, 2024. To ensure seamless digital payments using the ‘@paytm’ handle operated by Paytm Payments Bank, RBI has requested NPCI to examine the request to become a TPAP for the UPI channel’s continued operation. The move is part of efforts to facilitate a smooth transition and migration of the ‘@paytm’ handle to other banks while ensuring uninterrupted UPI services for Paytm app users.

This regulatory intervention highlights the RBI’s commitment to safeguarding the interests of digital payment users and maintaining the stability of the financial system. It also underscores the importance of ensuring that users of digital payment platforms face minimal disruptions during transitions or regulatory actions. As the NPCI evaluates the possibility of becoming a third-party application provider, the focus remains on providing a seamless experience for UPI users, promoting competition, and fostering a robust and resilient digital payments ecosystem in India.

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