RBI Issues Circular On Levying Unfair Interest Charges On Customers

The Reserve Bank of India (RBI) has asked the National Payments Corporation of India if it can become a third party application provider for continued UPI operations of the Paytm app.

RBI has barred Paytm Payments Bank from accepting further credits into its customer accounts and wallets after March 15, 2024. The central bank had barred Paytm from taking any credits into its Paytm Payments Bank on Januray 1.

The move by RBI will help customers continue with the UPI payments. With an aim to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm Payments Bank, RBI said it has asked the National Payments Corporation of India (NPCI) to examine the request to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app.

The request has been made by One97 Communication Ltd (OCL), which owns the Paytm brand, RBI said in a statement.

For seamless migration of ‘@paytm’ handle to other banks, the Reserve Bank of India (RBI) said NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions.