RBI To Meet NHAI, NPCI, Other Stakeholders To Chart Course For Migration Of Paytm Users

SUMMARY

The RBI is set to have a meeting with NHAI, NPCI and stakeholders to finalise modalities for migrating merchants and consumers from crisis-ridden Paytm

The upcoming FAQs are set to address queries received by the central bank regarding Paytm, following the recent regulatory restrictions imposed on the firm's payments bank

Last month, Paytm Payments Bank faced unprecedented challenges as the RBI restricted it from accepting deposits, credit transactions, or top-ups in customer accounts

As Paytm navigates the complexities of the Reserve Bank of India’s (RBI) recent action, the central bank will meet the fintech major’s key stakeholders, including National Highways Authority of India (NHAI) and National Payments Corporation of India (NPCI) among others, next week to finalise modalities for migrating merchants and consumers from the platform.

NHAI, which operates Fastag services, and NPCI, which oversees the Unified Payment Interface (UPI) infrastructure, will participate in discussions with the central bank before the release of FAQs by the regulator, ET reported, citing sources close to the matter.

The upcoming FAQs are set to address queries received by the central bank regarding Paytm, following the recent regulatory curbs imposed on the firm’s payments bank. The primary objective is to guide merchants through the transition issues arising from these restrictions.

Earlier, Financial Services Secretary Vivek Joshi said that the banking regulator might issue a clarification regarding the sudden ban on services by Paytm Payments Bank. This abrupt halt has led to uncertainty among Paytm’s customers and merchant partners, who are seeking clarity on the impact of the Reserve Bank of India’s move on their wallets and payment acceptance devices.

Paytm Payments Bank Ltd. (PPBL) faced restrictions, prohibiting it from accepting fresh deposits and offering banking services beyond February 29, as mandated by the central bank.

Immediately after the announcement, Paytm’s stock nosedived and hit the lower circuit for three consecutive trading sessions.

Meanwhile, the central bank is now likely to issue a clarification on the ongoing crisis at Paytm considering the fintech major’s large user base.

Alongside, the Enforcement Directorate (ED) and the Ministry of Finance’s financial intelligence unit (FIU) have requested the central bank to share their report on the recent action against Paytm Payments Bank.

Additionally, a clutch of Indian startup founders have lent support to Sharma. Names such as Matrimony’s Murugavel Janakiraman, Ritesh Malik of Innov8, PB Fintech’s Yashish Dahiya, and others wrote a letter to Prime Minister Narendra Modi, FM Sitharaman and RBI governor Shaktikanta Das, urging them to reconsider RBI’s directives.