Shock To Paytm and Good News For UPI Users, Reserve Bank Issues Advisory For NPCI

Abhay Singh
3 Min Read
RBI Governor Shaktikanta Das

Giving a big blow to Paytm, the Reserve Bank of India has relieved Paytm payment bank users. The Reserve Bank of India has indicated that it wants to retain Paytm’s UPI services. An advisory has been issued to the National Payments Corporation of India (NPCI).

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The bank has said that the payment service through the Paytm app should remain intact; for this, a third-party option should be explored. NPCI should search for payment service providers who can handle high-volume UPI transactions and be certified. For this, time is given till March 15, 2024.

Instructions To Give Option Of 4 To 5 Banks

Reserve Bank of India has directed that Paytm Payments Bank be closed from March 15, but to maintain the service as before, a third-party application provider (TPAP), which will be an NPCI-approved bank, is required. With RBI’s new decision, customers can transfer UPI accounts.

Let us tell you that NCPI is responsible for UPI transactions across the country. Therefore, the Reserve Bank asked NCPI to give the option of 4 to 5 banks to Paytm users so that they can transfer their Paytm account in time. Earlier, the Reserve Bank had issued an order to close Paytm Payments Bank after February 29, but now its limit has been extended till March 15, 2024.

How Many Digital Wallets Are There In Paytm?

Media reports show Paytm Payments Bank has over 300 million digital wallets. 40 million businessmen transact through it. Apart from Paytm, people also use PhonePe, Google Pay, Bhim App, Amazon Pay, WhatsApp Pay, HDFC’s PayZapp, MobiKwik, Freecharge, Airtel Payment Bank, etc., to make transactions. On the other hand, India tops the list of people doing transactions through online payment services.

Here, everyone from auto drivers to business people does online transactions. UPI payment service has been launched in 13 countries around the world. It comes on top because everyone, from vegetable sellers to rich industrialists, is taking advantage of this facility here. Recently, the UPI service was launched in a total of 11 countries. Now, after the launch of the UPI payment service in Sri Lanka and Mauritius, are 13 countries on this list.

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By Abhay Singh Journalist
Abhay has been with News Waker for over a few months and has covered various topics, from politics to business to sports. He is known for his engaging writing style and ability to explain complex issues in a way that's easy to understand.