RBI asks NPCI to help Paytm users migrate

Mumbai: The Reserve Bank has asked the National Payments Corporation of India (NPCI) to examine the possibility of migrating Paytm Payments Bank customers using the UPI handle '@paytm' to 4-5 other banks, in a bid to prevent any disruptions in the payment ecosystem.

On Friday, the central bank came out with additional steps for the benefit of customers, wallet holders and merchants who are availing banking services from Paytm Payments Bank, which has been barred from accepting deposits and credits after March 15, 2024. As per the website of Paytm Payments Bank (PPBL), it has 30 crore wallets and 3 crore bank customers.

As the PPBL 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 bank, and minimise concentration risk in the UPI system by having multiple payment app providers, the RBI said in a statement. "NPCI has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms," it said.