RBI has implemented measures to ensure seamless digital payments for UPI customers using @paytm handle, as Paytm Payments Bank will no longer accept further credits after March 15, 2024.
Summary of RBI Press Release
RBI has taken steps to ensure smooth digital payments for UPI customers using @paytm handle. Paytm Payments Bank won’t accept further credits after March 15, 2024.
RBI advises NPCI to examine Paytm’s request to become a Third-Party Application Provider (TPAP) for UPI.
@paytm handles must migrate seamlessly to newly identified banks to avoid disruption.
Paytm is seeking TPAP status to ensure UPI remains open for its users. They are planning to issue new VPAs through multiple banks including HDFC Bank, Axis Bank, and Yes Bank.
NPCI is asked to facilitate certification of 4-5 banks as Payment Service Provider (PSP) banks for high volume UPI transactions.
Important Points:
- Merchants using Paytm QR codes may open settlement accounts with PSP banks other than Paytm Payments Bank.
- Customers with accounts or wallets in Paytm Payments Bank should make alternative arrangements before March 15, 2024.
- FASTag and National Common Mobility Cards issued by Paytm Payments Bank should also make alternate arrangements before March 15, 2024.
- RBI emphasizes these actions are to protect customers and the payment system without prejudice to regulatory actions against Paytm Payments Bank.