As the Paytm Payments Bank cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using ‘@paytm’, the Reserve Bank of India (RBI) had said in March 2024 via a circular.
Also read: Do you have a @Paytm UPI handle? 4 things you should know to migrate your UPI handle
In response to this, this the National Payments Corporation of India (NPCI) has authorised One 97 Communications (OCL), the parent company of Paytm Payments Bank, to transfer its customers’ UPI (Unified Payments Interface) payments to other banks.
In March, NPCI also granted OCL permission to function as a Third-Party Application Provider (TPAP) in accordance with a multi-bank model. This means that Paytm can now provide UPI services through partner banks.
After the approval, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank.
According to the Paytm press release issued last week, “Following NPCI’s approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.”
Eventually (although there is no deadline now), users’ current UPI IDs with “@paytm” will be replaced with new IDs. Namely,
- SBI UPI handle: “@ptsbi”
- HDFC Bank UPI handle: “@pthdfc”
- Axis Bank UPI handle: “@ptaxis”
- Yes Bank UPI handle: “@ptyes”
According to the Paytm website, “YES Bank will also act as merchant acquiring bank for our existing and new UPI merchants. The “@Paytm” handle will be redirected to YES Bank. This will enable our existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner.”
How to switch to new UPI handle on Paytm app
The company has started transitioning users with the ‘@paytm’ UPI handle to these banks, ensuring seamless UPI payments. According to the press release, all four banks are operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.
Some Paytm UPI users are already getting “Important UPI alerts” flashing on their app, nudging them to start shifting to the UPI handles of one of the four banks.
One you click on the UPI update, you can follow the instructions to activate your new UPI ID on the Paytm app.
Paytm Payments Bank barred by RBI
Due to a breach of KYC regulations, the Reserve Bank of India (RBI) barred Paytm Payments Bank from providing any banking services in February of this year and placed a freeze on all essential transaction services via Paytm’s various platforms utilising UPI, IMPS, Aadhaar-enabled payments, and other methods, effective March 15, 2024.
Also read: Also read: Deadline for various Paytm Payments Bank services is March 15: List of Paytm services you can, cannot use this date
Steps to Create UPI Account on Paytm
Step 1: Download the Paytm UPI mobile payment application.
Step 2: Enter your mobile number. If you have a dual SIM phone, choose the SIM slot with your mobile number.
Step 3: Verify your mobile number by sending an SMS from your number.
Step 4: Select your bank from the list and ensure it matches the mobile number registered with your bank. Your bank account details will be fetched.
Step 5: Set up a UPI PIN if it’s your first time linking the bank. You’ll need your debit card details for this.
Step 6: Your bank account is now linked via UPI, and you’re ready to make your first payment.
How to change default bank account in Paytm
In the ‘Profile menu’ tap on “UPI & Payments Settings”
Tap on the bank account you want to select as default Bank a/c
Now tap “Set as default” & confirm by tapping “Yes”.
