New Delhi: One97 Communications Limited (OCL), which owns the brand Paytm, has initiated the migration process of its customers to Payment System Provider (PSP) banks Axis Bank, HDFC Bank, SBI and Yes Bank, the company said in a statement on Wednesday. The migration process was initiated after receiving the nod from the National Payment Corporation of India (NPCI).
To date, Paytm UPI customers have been utilising services provided by Paytm Payments Bank Limited (PPBL). However, the Reserve Bank of India (RBI) had imposed restrictions on PPBL, preventing it from engaging in various business activities.
What Paytm said on migration process?
"One 97 Communications Limited (OCL) that owns the brand Paytm, India’s leading payments and financial services company and the pioneer of QR, soundbox and mobile payments, has received go ahead, yesterday from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles immediately," the company said in a statement to stock exchanges.
"Following NPCI's approval on March 14, 2024, to onboard OCL as a Third- Party Application Provider (TPAP), Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks," it said.
The company has started transitioning ‘@paytm’ handles users to these banks, ensuring seamless UPI payments.
What has changed for Paytm users?
Once a Paytm user has been migrated to another partner payment service provider bank then the present UPI ID with ‘@paytm’ of these users will change to a new UPI ID with any of the four id: @ptsbi, @pthdfc, @ptaxis, and @ptyes.
"We are committed to grow the UPI ecosystem in partnership with NPCI to every nook and corner of India," a Paytm spokesperson said.
Leveraging the robust infrastructure of its banking partners, Paytm ensures uninterrupted and secure UPI payments for both users and merchants through the Paytm app, it added.
RBI action on Paytm Payments Bank
In a major action against Paytm Payments Bank (PPBL), RBI, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. The deadline was later extended to March 15. The direction follows persistent non-compliance and continued material supervisory concerns.
Since March 15, Paytm has operated as a third-party application provider (TPAP) rather than its previous role solely as a payments bank app. In this new capacity, Paytm has enlisted Axis Bank, Yes Bank, SBI, and HDFC Bank as its partners in the TPAP, serving as payment service provider (PSP) banks.
Also Read: RBI issues draft guidelines on payment aggregators | Check details
