In January 2024, the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank (PPBL) as a consequence of “persistent non-compliance” with laws. PPBL must settle all current transactions by March 15, 2024. This has led to an influence on Paytm’s UPI service as nicely. However, customers needn’t fear as clear tips have are available in round using Paytm UPI ID.
Third-Party App Provider (TPAP)
RBI has requested the NPCI to look at the potential for migrating Paytm Payments Bank prospects utilizing the UPI deal with ‘@paytm’ to 4-5 different banks, in a bid to forestall any disruptions within the cost ecosystem.
On Friday, the central financial institution got here out with extra steps for the good thing about prospects, pockets holders and retailers who’re availing banking providers from Paytm Payments Bank, which has been barred from accepting deposits and credit after March 15, 2024.
If accredited by NPCI, Paytm customers with “@paytm” UPI handles may doubtlessly migrate seamlessly to newly recognized banks, minimising disruption.
As per the web site of Paytm Payments Bank (PPBL), it has 30 crore wallets and three crore financial institution prospects.
NPCI, an umbrella organisation for working retail funds and settlement techniques in India, is an initiative of RBI and Indian Banks’ Association (IBA) for making a cost and settlement infrastructure in India.
As the PPBL can’t settle for additional credit into its buyer accounts and wallets after March 15, 2024, sure extra steps have develop into mandatory to make sure seamless digital funds by UPI prospects utilizing ‘@paytm’ deal with operated by the financial institution, and minimise focus threat within the UPI system by having a number of cost app suppliers, the RBI stated in a press release.
“NPCI has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms,” it stated.
One97 Communications Ltd (OCL), which owns the Paytm model, holds a 49 per cent stake in PPBL.
RBI additional stated that within the occasion of NPCI granting TPAP standing to OCL, it could be stipulated that ‘@paytm’ handles are to be migrated seamlessly from PPBL to a set of newly recognized banks to keep away from any disruption.
“No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle,” it added.
“For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions. This is in line with NPCI norms for minimising concentration risk,” RBI stated.
Also, for the retailers utilizing PayTM QR Codes, OCL could open the settlement accounts with a number of PSP Banks (apart from Paytm Payments Bank), the Reserve Bank stated.
It additional stated the migration of UPI handles is relevant solely to such prospects and retailers who’ve a UPI deal with ‘@Paytm’. For others who’ve a UPI handle or deal with apart from ‘@Paytm’, no motion is required to be taken by them.
RBI once more requested the purchasers, whose underlying account/ pockets is at present with Paytm Payments Bank, to make an alternate association with different banks nicely earlier than March 15, 2024.
It additional stated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, could make different preparations earlier than March 15, 2024, to keep away from any inconvenience.
“All the … actions are undertaken in the sole interest of protecting the customers and payment system from any possible disruptions and are without any prejudice to the regulatory or supervisory actions initiated by RBI against Paytm Payments Bank,” the central financial institution stated.
In March 2022, the RBI barred PPBL from onboarding new prospects with quick impact.
Paytm UPI Use After March 15
No, you will be unable to make use of @Paytm UPI after March 15, 2024, in case your UPI deal with is linked to Paytm Payments Bank. This is because of restrictions imposed by RBI on Paytm Payments Bank’s skill to deal with UPI transactions.
Here’s a abstract of what’s going to and gained’t work after March fifteenth:
What gained’t work:
- Using @Paytm UPI: You gained’t be capable of provoke or obtain UPI funds utilizing your @Paytm UPI deal with.
- Adding cash to your Paytm pockets: Deposits and credit score transactions to your Paytm pockets will probably be disabled.
What will nonetheless work:
- Existing pockets stability: You can nonetheless use your current pockets stability for transactions till it’s depleted.
- Withdrawing cash: You can withdraw cash out of your Paytm pockets to your linked checking account.
- Using Paytm app for different providers: You can nonetheless use the Paytm app for different providers like checking stability, invoice funds, and many others.
What to do:
If you at present use @Paytm UPI, it’s really helpful to:
- Switch to UPI linked to a different checking account: Link your UPI deal with to a special checking account earlier than March fifteenth to keep away from any disruption in your UPI transactions.
- Update linked accounts for computerized funds: Update any recurring funds or subscriptions at present linked to your Paytm UPI with the brand new UPI deal with related along with your different checking account.
