Paytm starts migrating users to new UPI IDs: What changes for you?

Until now, Paytm UPI customers were using Paytm Payments Bank Limited (PPBL) which was barred by the RBI.

One97 Communications Limited (OCL), Paytm's parent company, began migrating customers to partner payment service provider (PSP) banks Axis Bank, HDFC Bank, SBI and Yes Bank. Until now, Paytm UPI customers were using Paytm Payments Bank Limited (PPBL) which was barred by the Reserve Bank of India (RBI) from conducting several business operations.

A QR code for the Paytm digital payment system at a store in Mumbai, India. (Bloomberg)

What was RBI's action against Paytm?

RBI, on January 31, directed PPBL to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. The deadline was later extended to March 15. The central bank's order cited persistent non-compliance and continued material supervisory concerns.

How has been Paytm operating since RBI's order?

Since March 15, Paytm has been functioning as a third-party application provider (TPAP) and not as a payments bank app. Paytm roped in Axis Bank, Yes Bank, SBI and HDFC Bank as its payment service provider (PSP) banks to be its partners in the TPAP.

What Paytm said on the migration process?

"Following NPCI's approval on March 14, 2024, to onboard OCL as a Third- Party Application Provider (TPAP), Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks," the company said in a statement to stock exchanges.

What changes for Paytm users?

Following this, all Paytm UPI users will be nudged for consent with a pop-up notification for using Paytm with a new UPI ID. You can pick from one of the four handles: @ptsbi, @pthdfc, @ptaxis and @ptyes.