Paytm Initiates Customer Migration To Partner Banks For UPI Services

Image Credit: Reuters

New Delhi: In a recent development, One97 Communications Limited (OCL), the parent company of Paytm, has kickstarted the process of shifting its customers to partner payment service provider (PSP) banks. This move comes as a response to regulatory actions by the Reserve Bank of India (RBI) against Paytm Payments Bank Limited (PPBL), an affiliate of OCL.

Pop-Up Notifications

Starting April 17, Paytm UPI users will begin receiving pop-up notifications asking for consent to transition to new UPI IDs associated with partner banks. ()

UPI Handles

The four handles to choose from include @ptsbi, @pthdfc, @ptaxis, and @ptyes. ()

For the unversed, the RBI imposed strict sanctions on PPBL in February 2024, citing "persistent non-compliances" identified in an audit report. These actions led to PPBL's suspension of core functionalities as a payments bank.

In response to the regulatory measures, the National Payments Corporation of India (NPCI) granted OCL approval to participate in UPI services as a Third Party App Provider (TPAP) within the multi-bank model on March 14.

This approval allows Paytm to continue offering UPI services to its users after the cessation of PPBL's operations on March 15.

Data from the NPCI website reveals a decline in Paytm's UPI market share to nine percent in March, its lowest level in four years. This decline follows the RBI's stringent restrictions on PPBL, which were imposed in February

. In February, Paytm's UPI market share stood at 11 percent, dropping from the previous month.