Get ready for the ultimate showdown as Paytm fights against the clock to survive impending deadlines. Uncover the hidden truths and shocking revelations behind the scenes in this gripping saga of uncertainty and high stakes.
RBI Urges NPCI to Consider Paytm’s Appeal
The Reserve Bank of India (RBI) has called on the National Payment Corporation of India (NPCI) to take a close look at One97 Communications’ (OCL) request to become a Third-Party Application Provider (TPAP). This request comes from OCL, the parent company of Paytm, to ensure that the Paytm app can keep operating smoothly with the Unified Payments Interface (UPI).
Think of a Third-Party Application Provider as the company behind the scenes making sure your favorite payment apps work seamlessly. They’re the ones ensuring that when you transfer money or make a payment through apps like Paytm, everything runs smoothly and securely. NPCI, the organization overseeing India’s payment systems, regulates these Third Party Application providers to maintain standards and keep transactions safe.
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RBI’s Move and Paytm’s Situation
The RBI recently put some restrictions on PPBL due to compliance issues. This means that PPBL couldn’t accept certain kinds of deposits or transactions after February 29, 2024, initially. However, that deadline was extended to March 15, 2024. To ensure that Paytm users can still make UPI payments without interruption, the RBI has asked the National Payments Corporation to consider the fintech request to operate as a TPAP.
For PPBL to keep offering Unified Payments Interface-based services to its users, it needs the Corporation’s approval as a Third Party Provider. If approved, Paytm will need to move its ‘@paytm’ handles smoothly from PPBL to other banks. This move is to make sure there’s no disruption in service. The company won’t be able to add new users until all existing ones are moved over smoothly. The Payments Corporation will also help by certifying a few banks with proven abilities to handle large numbers of UPI transactions.
Current Landscape of Payment Apps
Just like PPBL, there are other payment apps approved by the Payments Corporation that you might be familiar with, like Google Pay, Phonepe, and WhatsApp. These apps, allow you to send and receive money easily using Unified Payments Interface. They’re all part of the Payments Corporation’s efforts to make digital payments simple, safe, and accessible for everyone.
In essence, while there are some regulatory hurdles to overcome, the goal is to ensure that the company’s users can continue to enjoy the convenience of payments without any interruptions.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and Paytm/RBI have contributed to the above report
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