Paytm’s parent company, One 97 Communications Limited (OCL), has initiated the process of transferring its customers to other payment service provider banks (PSBs) in compliance with regulations set by the Reserve Bank of India (RBI).
This transition follows directives from the National Payment Corporation of India (NPCI), as announced by Paytm on X (formerly Twitter).
Migration to Partner Banks
Upon receiving approval from NPCI on March 14, 2024, to operate as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm swiftly integrated with partner banks, namely Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank.
These banks are now fully operational on the TPAP, facilitating the seamless transfer of user accounts from Paytm.
Changes for Paytm Users
Upon migration, users’ current UPI IDs with ‘@paytm’ will be replaced with new IDs: @ptsbi, @pthdfc, @ptaxis, or @ptyes.
This shift aims to ensure uninterrupted UPI transactions for both users and merchants, with those having “@paytm” handles being prioritized for migration.
Paytm assures users of uninterrupted and secure UPI payments through its app, leveraging the infrastructure of its banking partners.
RBI’s Directive and Paytm Payments Bank
The migration was prompted by the Reserve Bank of India’s directive to Paytm Payments Bank Limited to halt deposits or top-ups in customer accounts, wallets, and other instruments after March 15.
This action was taken due to identified irregularities and non-compliance in payments.
Continuity Measures
To sustain operations post-deadline, Paytm has deepened ties with third-party banks. In February, it transferred its nodal account to Axis Bank and arranged for Soundbox and Card machine operations to continue beyond March 15.
Regarding the migration, a Paytm spokesperson stated,
We are dedicated to expanding the UPI ecosystem in collaboration with NPCI to every corner of India.