The Reserve Financial institution of India stated on Friday that it has requested the Nationwide Funds Company of India (NPCI) to overview an utility by Paytm, formally often called One 97 Communications, to develop into a third-party utility supplier ( TPAP).

If accepted, this can permit Paytm to proceed processing funds through India's unified funds interface (UPI), however would require a set of newly recognized banks to assist the app.

The NPCI ought to facilitate 4 to 5 banks, with the capability to course of excessive volumes of UPI funds, to behave as service suppliers to Paytm, the RBI stated on Friday.

“No new customers needs to be added from the stated TPAP till all current customers are satisfactorily migrated 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 from March 15, resulting in disruption for the favored funds app, which used the banking unit within the back-end.

Paytm is the third largest app for UPI funds within the nation, processing 1.6 billion month-to-month transactions, in response to knowledge obtainable on the NPCI web site. PhonePe and Google Pay are the 2 greatest ones.

To maintain Paytm QR codes working, the corporate might open settlement accounts with a number of banks, the RBI stated.

Paytm stated final week that it had signed up Axis Financial institution to behave as a banking companion.

© Thomson Reuters 2024

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