RBI asks NPCI to look at Paytm’s app request

BENGALURU: The Reserve Bank of India on Friday asked the National Payments Corporation of India (NPCI) to examine the request of One97 Communications Ltd (OCL), the parent company of Paytm, to become a third-party application provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.

“As the Paytm Payments Bank cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm Payments Bank, and minimise concentration risk in the UPI system by having multiple payment app providers,” the apex bank said.

The RBI on February 16 extended the deadline of business restrictions that it imposed on Paytm Payments Bank to March 15 from the earlier deadline of February 29.