MUMBAI: RBI has outlined a plan for seamless transfer of UPI virtual payment address (@paytm) and merchant QR codes from Paytm Payments Bank (PPBL) to its parent company One97.
This move ensures that customers can continue to scan and pay using their Paytm app and merchants can display the Paytm QR code for accepting payments even after March 15 as long as the underlying bank account is not PPBL.
The RBI said additional measures are required to ensure smooth digital payments for UPI customers using the handle '@paytm' operated by Paytm Payments Bank. The RBI had earlier imposed certain business restrictions on Paytm Payments Bank, resulting in a ban on all deposits into all bank accounts, be it savings, current, wallet or Fastag accounts, after March 15. To continue providing UPI services through its app One97 (which owns and operates under the Paytm brand) needs to purchase a third-party application provider license from NPCI.
RBI said that to facilitate smooth migration of '@paytm' handles, the NPCI needs to certify four to five banks as payment service provider banks capable of processing high volume UPI transactions. These banks will follow in the footsteps of PPBL in processing transactions. During the transition period, Paytm will not be able to attract new customers to UPI.
In the case of PhonePe and GPay, major banks HDFC, ICICI, SBI, Axis and Yes Bank are the processing banks. Although the transaction processing banks do not generate large amounts of revenue, participating in the transaction chain allows them to gain insight into customer transactions that can be used for analysis.
This move ensures that customers can continue to scan and pay using their Paytm app and merchants can display the Paytm QR code for accepting payments even after March 15 as long as the underlying bank account is not PPBL.
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The RBI said additional measures are required to ensure smooth digital payments for UPI customers using the handle '@paytm' operated by Paytm Payments Bank. The RBI had earlier imposed certain business restrictions on Paytm Payments Bank, resulting in a ban on all deposits into all bank accounts, be it savings, current, wallet or Fastag accounts, after March 15. To continue providing UPI services through its app One97 (which owns and operates under the Paytm brand) needs to purchase a third-party application provider license from NPCI.
RBI said that to facilitate smooth migration of '@paytm' handles, the NPCI needs to certify four to five banks as payment service provider banks capable of processing high volume UPI transactions. These banks will follow in the footsteps of PPBL in processing transactions. During the transition period, Paytm will not be able to attract new customers to UPI.
In the case of PhonePe and GPay, major banks HDFC, ICICI, SBI, Axis and Yes Bank are the processing banks. Although the transaction processing banks do not generate large amounts of revenue, participating in the transaction chain allows them to gain insight into customer transactions that can be used for analysis.
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