RBI Asks NPCI To Help Continue Operations Of Paytm App

The Reserve Bank of India (RBI) on Friday said the National Payments Corporation of India (NPCI) has been asked to examine the possibility of it becoming a third party application provider for continued UPI operations of the Paytm app, in a move aimed at ensuring uninterrupted services for Paytm app users. The directive comes as the central bank has restricted Paytm Payments Bank from receiving further credits into its customer accounts and wallets beyond March 15, 2024.

According to RBI's statement, One97 Communication Ltd (OCL), the parent company of the Paytm brand, has made the request for NPCI's involvement in sustaining UPI operations through the Paytm app.

To ensure a smooth transition for '@paytm' handle users to other banks, RBI has proposed that NPCI certify 4-5 banks as Payment Service Provider (PSP) Banks with proven capabilities to handle high-volume UPI transactions.