Due to RBI’s restrictions, the National Payments Corporation of India (NPCI) has allowed One 97 Communications (OCL), the parent company of Paytm, to shift UPI services to other banks.OCL is now authorized to operate as a Third-Party Application Provider (TPAP) under a multi-bank model. This means that Paytm can continue providing UPI services through partner banks.
A recent Paytm press release announced that after the NPCI approved One 97 Communications (OCL) as a Third-Party Application Provider (TPAP) on March 14, 2024, Paytm quickly integrated with four major banks: Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All these banks are now connected with the TPAP, making it easier for Paytm to transfer customer accounts to these partner banks.
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New UPI handles for Paytm users
According to an ET report, eventually, users will need to replace their UPI IDs ending with “@paytm” with new handles, though there’s no set deadline yet. The new handles are:
– SBI’s UPI handle: “@ptsbi”
– HDFC Bank’s UPI handle: “@pthdfc”
– Axis Bank’s UPI handle: “@ptaxis”
– Yes Bank’s UPI handle: “@ptyes”
These are the new IDs to use for UPI transactions through Paytm.
Switching to a new UPI handle on the Paytm app
Paytm has begun transitioning users with the ‘@paytm’ UPI handle to new banks to ensure smooth UPI payments. According to a press release, the four partner banks—Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank—are all set to handle this transition, making it easier for Paytm to move user accounts.
Some Paytm UPI users are seeing “Important UPI alerts” on their app, prompting them to switch to one of the new UPI handles. If you click on the UPI update, you’ll find instructions on how to activate your new UPI ID in the Paytm app.
Why did RBI bar Paytm Payments Bank?
Paytm Payments Bank has been barred from offering banking services by the RBI because it breached Know Your Customer (KYC) regulations. This ban, which took effect in February, includes a freeze on essential transaction services on Paytm’s platforms, such as UPI, IMPS, Aadhaar-enabled payments, and others, effective from March 15, 2024.
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Creating a UPI account on Paytm
If you are new to UPI or need to set up a new account, here’s what you need to do:
Step-by-Step Guide to Set Up UPI with Paytm:
Step 1: Download the Paytm UPI app on your mobile device.
Step 2: Enter your mobile number. If you have a dual SIM phone, select the SIM slot with the number you want to use.
Step 3: Verify your mobile number by sending an SMS.
Step 4: Choose your bank from the list. Make sure it matches the mobile number registered with your bank. This will link your bank account.
Step 5: If it’s your first time, set up a UPI PIN. You will need your debit card details for this step.
Step 6: Now your bank account is linked via UPI, and you’re ready to make payments.
Changing the default bank account in Paytm
To change your default bank account on Paytm, do the following:
1. Open the ‘Profile menu’ and select “UPI & Payments Settings.”
2. Choose the bank account you wish to set as your default.
3. Tap “Set as default” and confirm by tapping “Yes.”