 "Paytm gets nod for user migration to new UPI IDs: What this means for you")
The National Payments Corporation of India (NPCI) has allowed One97 Communications (OCL), the company that operates Paytm, to start migration of users to a new payment service provider (PSP) the bank handles. Four banks — State Bank of India (SBI), Axis Bank, HDFC Bank, and YES Bank — will act as PSPs to Paytm.
Users will now be asked for consent for using Paytm with a new UPI ID with one of the four banks’ UPI handles.
Paytm might ask you to switch your '@paytm' handle to a new UPI handle linked to one of the banks mentioned above (like yourname@axis). You'll be able to choose the bank.
This shouldn't disrupt your UPI payments. You'll still be able to send and receive money using Paytm.
Overall, this change ensures Paytm can continue offering UPI services. You might see a prompt to update your UPI handle soon.
Business Standard decodes what this means for you:
What's New for Paytm Users?
Paytm will migrate users from its Paytm Payment Bank to accounts with Axis Bank, HDFC Bank, SBI and YES Bank to ensure uninterupted UPI payments for both users and merchants.
Users with @paytm handles will be the first to be migrated.
Why the chanage:
The NPCI approval will allow users to continue offering UPI services through the partner banks.
How does it impact Paytm users:
Link their existing bank accounts to Paytm: This will allow them to make UPI payments directly from their bank accounts using the Paytm app.
Create new VPAs with specific banks: Paytm will now offer users the option to create VPAs linked to four different banks: State Bank of India (SBI), Axis Bank, HDFC Bank, and YES Bank. For example, your new VPA could be yourname@sbi or yourname@axis, depending on the bank you choose. Once a Paytm user has been migrated, the current UPI ID with ‘@paytm’ of these users will change to a new UPI ID with any of the four IDs: @ptsbi, @pthdfc, @@ptaxis and @ptyes.
"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 release said.
On March 14, NPCI approved a third party application (TPAP) provider permit for Paytm in collaboration with SBI, Axis Bank, Yes Bank and HDFC bank for continuity of UPI transactions for the company's users.
Paytm's UPI transactions were earlier being carried out through Paytm Payments Bank (PPBL) that has been barred by the Reserve Bank of India from accepting deposits, credit transactions, or top-ups in any customer accounts after March 15.
One97 Communications Limited (OCL) holds a 49 per cent stake in PPBL, while company's Founder and CEO Vijay Shekhar Sharma holds 51 per cent stake in the beleaguered bank.