Paytm begins user transfer to PSP banks with NPCI approval

Paytm's parent company, One 97 Communications Limited (OCL), has started the process of transferring its customers to other Payment Service Provider Banks (PSBs) as per the regulations set by the Reserve Bank of India (RBI).

This transition follows the directives of the National Payment Corporation of India (NPCI), as announced by Paytm on X (formerly Twitter).

Migration to Partner Banks

After receiving approval from NPCI on March 14, 2024, to operate as a Third Party Application Provider (TPAP) in the Multi-Payment Service Provider API Model, Paytm quickly integrated with partner banks, namely Axis Bank, HDFC Bank and State Bank of India. (SBI) and YES Bank.

These banks are now fully operational on TPAP, facilitating seamless transfer of user accounts from Paytm.

Changes for Paytm users

After migration, current UPI IDs of users with '@paytm' will be replaced with new IDs: @ptsbi, @pthdfc, @ptaxis or @ptyes.

This change aims to ensure uninterrupted UPI transactions for both users and merchants by prioritizing those with “@paytm” identifiers for migration.

Paytm ensures users seamless and secure UPI payments through its app, leveraging the infrastructure of its banking partners.

RBI and Paytm Payments Bank Directive

The migration was prompted by the Reserve Bank of India's directive to Paytm Payments Bank Limited to stop deposits or top-ups in customer accounts, wallets and other instruments after March 15.

This action was taken due to detected irregularities and non-compliance with payments.

Continuity measures

To maintain operations after the deadline, Paytm has deepened ties with third-party banks. In February, he transferred his nodal account to Axis Bank and made the operations of the Soundbox and Card machine continue beyond March 15.

Regarding the migration, a Paytm spokesperson stated:

We are dedicated to expanding the UPI ecosystem in partnership with NPCI to every corner of India.

Source