With Paytm not expecting any relaxation from RBI on the last date, NPCI can provide this relief

The Reserve Bank of India (RBI) has already banned Paytm Payments Bank, one of the country's largest digital payment platforms. But keeping in mind the convenience of the customers, it has given Paytm an extension for operations till March 15. Earlier, he got this concession only till February 29, which was later extended. Now that Paytm payments have received a relaxation from the RBI, there is little hope of further growth.

Meanwhile, a big change has been seen. Paytm may obtain a third-party application provider license from the National Payments Corporation of India (NPCI). However, this license will be available for Paytm, a product of One97 Communication. This has been confirmed by a news agency. In such a situation, Paytm's services are expected to continue even after March 15, when Paytm Payments Bank is likely to shut down.

What is a third party application provider?

According to the agency's report, if Paytm's third-party app provider license is approved, customers will be able to continue making payments through the Paytm app. Paytm's banking unit will be shut down, but people will be able to continue making UPI payments linked to other bank accounts on Paytm.

Third party application providers are platforms that provide NPCI's UPI payment service. However, he cannot sell banking products on this platform on his own behalf. From PhonePe to GooglePay, all are third party app providers.

Paytm cannot do this

Currently, people make UPI payments on Paytm's platform from accounts linked to Paytm Payments Bank. Apart from this you can recharge Fasteg, make bill payments and use its wallet service. Now that the RBI has banned it, people will not be able to deposit money into wallets linked to Paytm Payments Bank. You will not be able to use Fastag issued by Paytm Payments Bank.