The Reserve Bank of India (RBI) on Friday announced more steps to ensure that there is no disruption for customers having the virtual payment address (VPA) of Paytm Payments Bank (PPBL) in conducting UPI transactions.
The RBI has asked the National Payments Corporation of India (NPCI) to examine the possibility of migrating PPBL customers using the UPI handle ‘@paytm’ to 4-5 other banks.
It has also asked the NPCI to consider the request of One97 Communication, the Paytm parent and associate of PPBL, to become a third-party application provider for the UPI channel for continued UPI operation of the Paytm app.
NPCI, which is the umbrella organisation for operating retail payments and settlement systems in India, approves the participation of banks, payment service provider (PSP) banks, third party application providers (TPAP) and prepaid payment instrument issuers (PPIs) in UPI.
According to its website, a PSP bank is a member of UPI and connects to the UPI platform to avail themselves of a UPI payment facility. It provides the facility to the TPAP, which in turn enables the end-user customers or merchants to make and accept UPI payments.
The RBI said in a statement that if it grants the TPAP status to One97 Communication, the @paytm handles are moved in a seamless manner from Paytm Payments Bank to a set of newly identified banks.