On Friday, the Reserve Bank of India announced that it has requested that the National Payments Corporation of India (NPCI) approve Paytm’s bid to become a third-party application provider (TPAP), formerly known as One97 Communications. Monitor. pay attention. Said.
If approved, it will allow Paytm to continue processing payments through India’s popular Unified Payments Interface (UPI), but will require a group of newly identified banks to support the app.
The RBI on Friday said NPCI should facilitate four to five banks with the capacity to process large volume of UPI payments to act as service providers for Paytm.
“No new users will be added by the said TPAP until all existing users are successfully migrated to the new handle,” the Reserve Bank of India said.
Last month, the Reserve Bank of India asked Paytm’s affiliate Paytm Payments Bank to shut down its business by March 15, causing disruption for the popular payments app, which used a banking entity on the back end.
According to data available on the NPCI website, Paytm is the third largest app for UPI payments in the country, handling 1.6 billion monthly transactions. The two biggest are Google Pay and PhonePe.
RBI said that the company can open settlement accounts with one or more banks to keep the Paytm QR code operational.