The Reserve Financial institution of India stated on Friday it has requested the Nationwide Funds Company of India (NPCI) to look at a request from Paytm, formally referred to as One 97 Communications, to turn out to be a 3rd get together software supplier (TPAP).
If accepted, this may enable Paytm to proceed processing funds by way of India’s in style unified funds interface (UPI), however will want a set of newly recognized banks to again the app.
The NPCI ought to facilitate 4 to 5 banks, with a capability to course of excessive volumes of UPI funds, to behave as service suppliers to Paytm, the RBI stated of Friday.
“No new customers are to be added by the stated TPAP till all the prevailing customers are migrated satisfactorily to a brand new deal with,” the RBI stated.
Final month, the central financial institution requested Paytm Funds Financial institution, an affiliate of Paytm, to wind down its enterprise by March 15, resulting in disruption for the favored cost app, which used the banking unit on the again finish.
Paytm is the third largest app for UPI funds within the nation, processing 1.6 billion month-to-month transactions, in accordance with knowledge obtainable on the NPCI web site. PhonePe and Google Pay are the 2 largest.
To maintain Paytm QR codes operating, the corporate could open settlement accounts with a number of banks, the RBI stated.
Paytm stated final week it had signed on Axis Financial institution to behave as a banking associate.
© Thomson Reuters 2024
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