The Reserve Bank of India (RBI) is set to convene meetings with key stakeholders including the National Highways Authority of India (NHAI) and the National Payments Corporation of India (NPCI) next week, as reported by The Economic Times (ET) on Friday. These discussions are aimed at addressing the transition of customers and merchants from Paytm Payments Bank.
According to the report, these meetings are scheduled prior to the release of frequently asked questions (FAQs) by the RBI. The NPCI oversees United Payments Interface (UPI) payments, while NHAI manages the FASTag service. During the post-monetary policy committee (MPC) meeting on February 8, RBI Governor Shaktikanta Das noted the influx of queries from both customers and merchants. He announced the upcoming release of an FAQ to address uncertainties surrounding the matter.
Last month, the RBI imposed a ban on Paytm Payments Bank (PPBL) from accepting new deposits after February 29. As PPBL operates the Paytm wallet, which includes services like FASTag, customers are advised to transfer their accounts to other banks. Paytm has initiated discussions with third-party banks for this purpose.
A source mentioned in the ET report highlighted that the primary objective of the upcoming meetings is to facilitate a smooth transition for merchants. During the press conference on February 8, the RBI cited “persistent non-compliance” as the reason behind the ban imposed on PPBL. The bank had been prohibited from acquiring new customers since March 11, 2022. Governor Das emphasized the RBI’s approach of bilateral engagement, where regulated entities are encouraged to rectify issues before regulatory intervention.
Overall, the RBI is focused on ensuring compliance within the banking sector while providing ample opportunity for corrective measures before resorting to regulatory action.
