MUMBAI: RBI has outlined a plan for the seamless transfer of the UPI virtual payment address (@paytm) and the merchant QR codes from Paytm Payments Bank (PPBL) to its parent One97.
This move ensures 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.
RBI said that additional measures are necessary to ensure smooth digital payments for UPI customers using the ‘@paytm’ handle operated by Paytm Payments Bank. The RBI had previously imposed certain business restrictions on Paytm Payments Bank, which resulted in a ban on all deposits into any bank account, whether savings, current, wallet or Fastag after March 15. To continue providing UPI services through its app, One97 (which owns and operates under the Paytm brand) must obtain a third-party application provider licence from NPCI.
RBI said that to facilitate the smooth migration of ‘@paytm’ handles, the NPCI must certify 4-5 banks as Payment Service Provider banks capable of processing high-volume UPI transactions. These banks will step into the shoes of PPBL for processing transactions. During the transition period, Paytm will not be able to onboard new customers for UPI.
In the case of PhonePe and GPay, big banks – HDFC, ICICI, SBI, Axis and Yes Bank are the processing banks. Although there is not much revenue for the transaction processing banks, by participating in the transaction chain they can get visibility on customer transactions which can be used for analytics.
This move ensures 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.
RBI said that additional measures are necessary to ensure smooth digital payments for UPI customers using the ‘@paytm’ handle operated by Paytm Payments Bank. The RBI had previously imposed certain business restrictions on Paytm Payments Bank, which resulted in a ban on all deposits into any bank account, whether savings, current, wallet or Fastag after March 15. To continue providing UPI services through its app, One97 (which owns and operates under the Paytm brand) must obtain a third-party application provider licence from NPCI.
RBI said that to facilitate the smooth migration of ‘@paytm’ handles, the NPCI must certify 4-5 banks as Payment Service Provider banks capable of processing high-volume UPI transactions. These banks will step into the shoes of PPBL for processing transactions. During the transition period, Paytm will not be able to onboard new customers for UPI.
In the case of PhonePe and GPay, big banks – HDFC, ICICI, SBI, Axis and Yes Bank are the processing banks. Although there is not much revenue for the transaction processing banks, by participating in the transaction chain they can get visibility on customer transactions which can be used for analytics.
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