According to moneycontrol the Reserve Bank of India (RBI) is actively engaged in discussions with various organizations managing toll payments, mobile payments, bill payments, and more to alleviate customer inconvenience ahead of the release of frequently asked questions (FAQs) on Paytm. These FAQs are expected to be published on either February 14 evening or February 15, according to sources familiar with the matter.
NETC oversees toll payments through FASTag, NPCI operates the popular mobile payments platform Unified Payments Interface (UPI), and BBPS manages bill payments. One 97 Communications, the parent company of Paytm, utilized Paytm Payments Bank Limited (PPBL) as the sponsor bank and maintained nodal accounts for these services.
Discussions with these organizations aim to facilitate the seamless transition of customers to alternative banks or the transfer of remaining balances. Additionally, deliberations focus on enabling the migration of accounts where balances cannot be withdrawn. Efforts are also underway to ensure minimal disruption to UPI payments during this transition phase, as per a senior banking executive familiar with the discussions.
While there are no plans to extend the deadline for banking services beyond the current one provided by PPBL, banks expect the RBI to offer indemnity for any KYC-related issues resulting from the takeover of PPBL accounts. However, the FAQs are not expected to address banks’ business decisions regarding collaboration with PPBL.
The absence of indemnity implies that entities taking over these accounts will need to address any KYC-related challenges independently. Despite this, discussions are ongoing to streamline the transition process and mitigate potential disruptions to banking services.
