Paytm starts user migration to new UPI IDs: Users to give consent

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 banks will serve as Paytm’s PSPs: State Bank of India (SBI), Axis Bank, HDFC Bank, and YES Bank.

Customers will now be asked for permission before using Paytm with a new UPI ID that matches one of the UPI handles of the four banks.

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. Paytm will still allow you to send and receive money. Overall, the change guarantees Paytm’s ability to keep providing UPI services. Soon, there may be an opportunity for you to update your UPI handle.

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?

By using the partner banks, users would be able to continue providing UPI services with the approval of NPCI.

How does it affect consumers of Paytm?

Connect existing bank accounts to Paytm: This would enable users of the Paytm app to make UPI payments straight from their bank accounts.

Establish new VPAs with particular banks: Users of Paytm will now have the choice to establish VPAs connected to four distinct banks: Axis Bank, HDFC Bank, YES 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. Following a Paytm user’s migration, their existing UPI ID, which begins with “@paytm,” will change to one of the following four IDs: @ptsbi, @pthdfc, @@ptaxis, and @ptyes.

In a release, it is stated that “One 97 Communications Limited (OCL) which owns the brand Paytm, India’s leading payments and financial services company and the initial provider of QR, soundbox and mobile payments, received a nod yesterday from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles instantly.”

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.