Sign In
Learn bits
Economy
Mahesh

25/02/24 19:53 PM IST

RBI asks NPCI to consider Paytm’s request for TPAP

In News
  • The Reserve Bank of India (RBI) has asked the National Payment Council of India (NPCI) to examine the request of One97 Communications’ (OCL), which owns Paytm, to become a Third-Party Application Provider (TPAP).
TPAP
  • A Third-Party Application Provider is an entity that provides the UPI compliant app(s) to the end-user customers to facilitate UPI-based payment transactions.
  • These applications could be mobile wallets, merchant apps, or any other platform that utilises UPI for payments.
  • NPCI, the umbrella organisation for operating retail payments and settlement systems in India, owns and operates the UPI platform.
  • TPAPs leverage the UPI infrastructure provided by NPCI and work with payment service providers (PSPs) and banks to facilitate transactions.
  • They are responsible for ensuring that their applications adhere to security standards and compliance guidelines set by NPCI.
Implications
  • For Paytm, TPAP approval from NPCI is a must to continue to provide UPI-based payment transactions facility to customers.
  • The RBI said in case NPCI grants TPAP status to OCL, ‘@paytm’ handles will have to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption.
  • OCL will not be allowed to add new users until all the existing users are migrated satisfactorily to a new handle.
  • For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as PSP banks with demonstrated capabilities to process high volume UPI transactions.
  • This is to minimise concentration risk in the UPI system by having multiple payment app providers.
  • As per NPCI regulations, large TPAPs have to mandatorily participate in UPI through a multibank model only.
  • Currently, there are 22 NPCI-approved 3rd party Unified Payments Interface (UPI) apps that can be used to send and receive money from other UPI users by using UPI IDs.
  • They include Amazon Pay, Google Pay, Groww, Jupiter Money, Mobikwik, Phonepe, Samsung Pay, TataNeu and Whatsapp.
Source- Indian Express

More Related Current Affairs View All

19 Sep

Cabinet clears development of Next Generation of satellite Launch Vehicle

'The Union Cabinet, led by Prime Minister Narendra Modi, has approved the development of the Next Generation Launch Vehicle (NGLV).' The NGLV is set to significantly enhance Ind

Read More

19 Sep

Cabinet approves Pradhan Mantri Janjatiya Unnat Gram Abhiyan

'The Union Cabinet recently approved a package that will provide up to ?5 lakh each to tribal households and villages across the country.' The new package also aims to give an i

Read More

19 Sep

‘Bio-RIDE’ scheme

'The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved continuation of the two umbrella schemes of Department of Biotechnology (DBT),' Merged as

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps