Worried about Paytm UPI & FASTag migration? RBI to meet NPCI, NHAI officials to rescue Paytm customers

Feb 9, 2024

concerned about Paytm UPI , fastag migration? The Reserve Bank of India is set to convene meetings with several entities, including the National Highway Authority of India.NHAI) and National Payments Corporation of India (NPCI) to finalize plans to transition merchants and consumers from Paytm next week, sources familiar with the matter revealed.
An ET report said the discussions, which will include stakeholders such as NHAI, which manages the Fastag service, and NPCI, which oversees the Unified Payment Interface (UPI) infrastructure, is aimed at finding a solution to the central bank's concerns regarding Paytm following the recent regulatory restrictions. To resolve queries received by the Bank.
Upcoming release of Frequently Asked Questions (FAQs) by reserve Bank of India Will provide guidance on various transition issues for traders. Paytm Payments Bank Limited, (PPBL) was directed by the central bank to stop taking new deposits and providing banking services after February 29.

Paytm crisis timeline

Paytm crisis timeline

RBI Governor Shaktikanta Das, speaking to reporters after the monetary policy on Thursday, confirmed that the regulator will issue a clarification in the coming week. Earlier, Financial Services Secretary Vivek Joshi had hinted in an interview with ET on February 7 that the banking regulator may give further clarification.
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The sudden ban on PPBL's services has left Paytm customers and merchant partners uncertain about the impact on their wallets and payment acceptance devices, leading them to seek clarity on the matter.
According to a source familiar with the matter, NPCI is collaborating with the central bank to ensure a seamless transition for UPI users. In a discussion with analysts last week, Paytm outlined plans to migrate PPBL-linked virtual payment addresses (VPAs) and merchant QR codes to other banking partners. Additionally, Fastags and wallets issued through PPBL will need to be transferred to other banks.
The recent RBI directive on January 31 cited persistent non-compliance and supervisory concerns. Paytm Payments Bank is banned from adding new customers from March 11, 2022. Lenders may also require approval from central banks before taking over Paytm's payment settlement business.
Read this also Ban on Paytm Payments Bank: 'Enough time given to comply' – Strong words from RBI on persistent non-compliance
RBI Governor Das stressed the importance of constructive engagement with regulated entities and highlighted the regulator's approach to ensure corrective action in a timely manner. He stressed that regulatory action is commensurate with the seriousness of the situation, with systemic stability and customer protection given priority.

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