Due to RBI restrictions, the National Payments Corporation of India (NPCI) allowed One 97 Communications (OCL), the parent company of Paytm, to transfer UPI services to other banks. Third-party application provider (TPAP) under a multi-bank model. This means Paytm can continue providing UPI services through partner banks.
A recent press release from Paytm announced that after 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 to TPAP, making it easier for Paytm to transfer customer accounts to these partner banks.
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New UPI Identifiers for Paytm Users
According to an ET report, eventually, users will need to replace their UPI IDs ending in “@paytm” with new identifiers, although there is no set deadline yet. The new handles are:
– SBI UPI identifier: “@ptsbi”
– HDFC Bank UPI Identifier: “@pthdfc”
– Axis Bank UPI Identifier: “@ptaxis”
– Yes, bank UPI identifier: “@ptyes”
These are the new IDs to be used for UPI transactions through Paytm.
Switching to a new UPI identifier on the Paytm app
Paytm has started transitioning users with the UPI handle '@paytm' 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 ready to handle this transition, making it easier for Paytm to move user accounts.
Some Paytm UPI users are seeing “important UPI alerts” on their apps, prompting them to switch to one of the new UPI identifiers. If you click on UPI update you will find instructions on how to activate your new UPI ID on the Paytm app.
Why did RBI ban Paytm Payments Bank?
Paytm Payments Bank has been banned from offering banking services by the RBI as it violated Know Your Customer (KYC) regulations. This ban, which came into force in February, includes a freeze on essential transaction services on Paytm 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 is 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 cell phone 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 cell phone 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 are ready to make payments.
Changing Default Bank Account on 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 want to set as your default.
3. Tap “Set as default” and confirm by tapping “Yes”.
