In a significant development on Friday, the Reserve Bank of India (RBI) directed the National Payments Corporation of India (NPCI) to assess the feasibility of utilizing the UPI channel to facilitate the continued operation of the Paytm app.
In an official statement released on Friday, the RBI stated, "The National Payments Corporation of India (NPCI) has been instructed by the RBI to review the request from One97 Communication Ltd (OCL) to serve as a Third-Party Application Provider (TPAP) for the UPI channel, allowing for the ongoing UPI operations of the Paytm app, in accordance with the established regulations."
Furthermore, it has been advised that if NPCI grants TPAP status to OCL, it should be mandated that '@paytm' handles are smoothly transitioned from Paytm Payments Bank to a designated set of new banks to prevent any disruptions. The statement emphasizes that no new users should be onboarded by the TPAP until all existing users have been satisfactorily migrated to a new handle.
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