RBI to meet NHAI, NPCI to discuss rescue plan for Paytm PB users: Report

NPCI oversees the United Payments Interface payments, and NHAI operates the FASTag service

The Reserve Bank of India (RBI) will meet the National Highways Authority of India (NHAI) and National Payments Corporation of India (NPCI), among other stakeholders, next week to discuss the migration of customers and merchants from Paytm Payments Bank, The Economic Times (ET) reported on Friday.

The report said that the meetings will be held ahead of the release of the frequently asked questions (FAQs) by the RBI. The NPCI oversees the United Payments Interface (UPI) payments, and NHAI operates the FASTag service.

In the post-monetary policy committee (MPC) meeting on February 8, RBI Governor Shaktikanta Das said that the banking regulator has been receiving several queries and clarifications from customers as well as merchants. He said the RBI will release an FAQ next week to clarify the doubts.

READ: Regulatory action on Paytm Payments Bank, not app, clarifies RBI

 

Last month, Paytm Payments Bank (PPBL) was barred by the RBI from taking any new deposits after February 29. Paytm wallet, which provides services like FASTag, comes under PPBL. Paytm had earlier said that FASTags and wallets will need to be transferred to other banks and the company is already talking to third-party banks.

A person aware of the matter was quoted in the ET report as saying that the main idea of the meeting will be to guide the merchants on transition.

In the press conference on February 8, RBI said that the ban was imposed due to "persistent non-compliance" by Paytm Payments Bank. It has been barred from adding new customers since March 11, 2022.

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Das also said that the RBI focuses on "bilateral engagement" and nudges the regulated entities to take corrective action. He added that the REs are given enough time to take corrective measures before any step is taken by the RBI.