One97 Communications (OCL), the firm that runs Paytm, has been given permission by the National Payments Corporation of India (NPCI) to begin migrating users to a new payment service provider (PSP) that the bank manages. Four institutions will serve as Paytm's PSPs: State Bank of India (SBI), Axis Bank, HDFC Bank, and YES Bank.
Now, while utilizing Paytm with a new UPI ID that matches one of the UPI handles of the four banks, users will be prompted for permission.
Paytm may request that you replace your '@paytm' handle with a new UPI handle (such as yourname@axis) associated with one of the aforementioned banks. It will be up to you to select the bank.
Paying via UPI shouldn't be affected by this. The Paytm app will still allow you to transfer and receive money. Overall, this modification guarantees Paytm's ability to keep providing UPI services. Soon, there may be a popup for you to update your UPI handle.
Business Standard explains the meaning of this for you:
What's New for Users of PayTM?
In order to guarantee uninterrupted UPI payments for users and merchants, Paytm will move consumers from its Paytm Payment Bank to accounts with Axis Bank, HDFC Bank, SBI, and
YES Bank.
The first users to be moved over will be those with @paytm handles.
Why has it changed?
Users will be able to go on providing UPI services through the partner banks thanks to the NPCI permission.
How does it affect consumers of Paytm:
Connect Paytm to their current bank accounts: They will be able to use the Paytm app to make UPI payments straight from their bank accounts as a result.
Establish new VPAs with particular banks: Users of Paytm will now have the opportunity to establish Virtual Payment Accounts (VPAs) with four distinct banks: YES Bank, Axis Bank, HDFC Bank, and State Bank of India (SBI). Depending on the bank you select, your new VPA might be anything like yourname@sbi or yourname@axis. The present UPI ID of a Paytm user with the ID "@paytm" will change to a new UPI ID with any of the four IDs: @ptsbi, @pthdfc, @@ptaxis, and @ptyes after the user has been migrated.
The National Payment Corporation of India (NPCI) gave One 97 Communications Limited (OCL), the company behind Paytm, the largest payments and financial services provider in India and the creator of QR codes, soundboxes, and mobile payments, the green light yesterday to begin migrating users to new Payment System Provider (PSP) bank accounts right away.
In order to maintain UPI transactions for the company's users, Paytm, in partnership with SBI, Axis Bank, Yes Bank, and HDFC Bank, received approval from the NPCI on March 14 for a third party application (TPAP) provider permission.
The Reserve Bank of India has prohibited Paytm Payments Bank (PPBL) from accepting deposits, credit transactions, or top-ups in any client account after March 15. Paytm's UPI transactions were previously processed through PPBL. Founder and CEO of the company Vijay Shekhar Sharma owns 51% of PPBL, while One97 Communications Limited (OCL) owns 49% of the troubled bank.
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