Syllabus: GS- III
Subject: Economy
Topic: Banking and Financial Intermediaries
Issue: Third-Party Application Provider(TPAP)
Context: The RBI has asked the NPCI to examine the request of Paytm to become a Third-Party Application Provider (TPAP).
Third-Party Application Provider(TPAP):
- It is an entity that provides the UPI compliant apps to the end-user customers to facilitate UPI-based payment transactions.
- Any entity which is using the UPI infrastructure for payments requires approval from NPCI.
| National Payment Corporation of India (NPCI)
● It is a non- bank entity and holds a license under the Payment and Settlement Systems Act 2007 to operate the payment/settlements. ● NPCI has developed Unified Payment Interface (UPI) and it owns and operates it. |
