{"id":315164,"date":"2024-02-23T18:30:57","date_gmt":"2024-02-23T13:00:57","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=315164"},"modified":"2024-02-23T18:00:38","modified_gmt":"2024-02-23T12:30:38","slug":"rbi-lays-down-additional-steps-to-be-followed-by-paytm-payments-bank-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/23\/rbi-lays-down-additional-steps-to-be-followed-by-paytm-payments-bank-legal-news\/","title":{"rendered":"RBI advises NPCI to examine request of One97 Communication Ltd to become a Third-Party Application Provider"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"> On 23-2-2024, the Reserve Bank of India (&#8216;<span style=\"font-weight: bold;\">RBI&#8217;<\/span>) laid down additional steps that has to be followed by the Paytm Payments Bank Ltd. (&#8216;<span style=\"font-weight: bold;\">Paytm Bank&#8217;<\/span>) along the with the <a href=\"https:\/\/www.scconline.com\/blog\/post\/2024\/01\/31\/rbi-imposes-additional-curbs-on-paytm-payments-bank-legal-news\/\" target=\"_blank\" rel=\"noopener\">business restrictions that were imposed on the Paytm Bank earlier<\/a>.<\/p>\n<p style=\"font-weight: bold;\">Key Points:<\/p>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p style=\"font-weight: bold;\">Need-<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>To ensure seamless digital payments by UPI customers using <span style=\"font-weight: bold;\">&#8220;@paytm&#8221;<\/span> handle.<\/p>\n<\/li>\n<li>\n<p>To minimize the risk in the UPI system by having multiple payment application providers.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Additional Steps:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>RBI has advised the National Payments Corporation of India (<span style=\"font-weight: bold;\">&#8216;NPCI&#8217;<\/span>) to examine the request of One97 Communication Ltd. (<span style=\"font-weight: bold;\">&#8216;OCL&#8217;<\/span>) to become a Third-Party Application Provider (<span style=\"font-weight: bold;\">&#8216;TRAP&#8217;<\/span>) for UPI channel for continued UPI operation of the Paytm app.<\/p>\n<\/li>\n<li>\n<p>Further, it has been advised that in case NPCI grants TRAP status to OCL, the migration of &#8220;@paytm&#8221; handles should be migrated in a seamless manner from Paytm bank to other any other newly identified bank.<\/p>\n<p style=\"font-weight: bold;\">No new users will be added by the TRAP until all existing users have been migrated to a new handle.<\/p>\n<\/li>\n<li>\n<p>NPCI can facilitate certification of 4-5 banks as Payment Service Provider (<span style=\"font-weight: bold;\">&#8216;PSP&#8217;<\/span>) Banks having capabilities to process high volume UPI transactions to make the migration seamless. This will also minimize concentration risk.<\/p>\n<\/li>\n<li>\n<p>OCL can open settlement accounts with one or more PSP Banks for the merchants using PayTM QR Codes.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"font-weight: bold;\">Clarification:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>No action is required for customers having UPI address other than &#8220;@paytm&#8221;.<\/p>\n<\/li>\n<li>\n<p>Customers having underlying account\/ wallet with Paytm Bank, holders of Fastag and National Common Mobility Cards have been advised to make alternative arrangements with other banks before 15-3-2024.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">RBI lays down additional steps to be followed by Paytm Payments Bank Ltd.<\/p>\n","protected":false},"author":67515,"featured_media":315168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[65699,37291,52710,64880,65698,39075],"class_list":["post-315164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-payment-service-provider-banks","tag-payments","tag-paytm","tag-paytm-payments-bank","tag-third-party-application-provider","tag-upi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Additional Steps imposed by RBI on Paytm Bank | SCC Blog<\/title>\n<meta name=\"description\" content=\"Reserve Bank of India laid down additional steps that has to be followed by the Paytm Payments Bank Ltd. 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