MUMBAI: Paytm users can continue to use the app for UPI payments even as RBI restrictions on the company's banking arm come into effect from March 16.
The National Payments Corporation of India on Thursday authorized One97 Communications, which operates Paytm, to join UPI as a “third-party app provider” under a multi-bank model – this move will ensure continuity for Paytm users.
UPI transactions on the Paytm app, which were previously processed by Paytm Payments Bank, are now facilitated Axis bench, HDFC Bank, Yes Bank and SBI. Yes Bank will also handle merchant acquisition for existing and new UPI merchants affiliated with Paytm. NPCI said that the “@paytm” handle will be redirected to Yes Bank for a smooth transition.
After March 15, Paytm Payments Bank customers will no longer be able to deposit money into their savings accounts, wallets, grocery wallets or Fastags. While Fastags linked to Paytm Payments Bank accounts will remain functional until the balance is depleted, NHAI has advised users to switch to another bank's wallet.
Through an FAQ, Paytm assured its customers that its app and services will function without interruption once the RBI restrictions come into effect. This includes the use of QR codes, sound boxes and card machines. Paytm said users can continue to recharge mobile/internet, pay utility bills, enjoy restaurant deals, book cylinders, and pay piped gas and residential electricity bills.
The National Payments Corporation of India on Thursday authorized One97 Communications, which operates Paytm, to join UPI as a “third-party app provider” under a multi-bank model – this move will ensure continuity for Paytm users.
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UPI transactions on the Paytm app, which were previously processed by Paytm Payments Bank, are now facilitated Axis bench, HDFC Bank, Yes Bank and SBI. Yes Bank will also handle merchant acquisition for existing and new UPI merchants affiliated with Paytm. NPCI said that the “@paytm” handle will be redirected to Yes Bank for a smooth transition.
After March 15, Paytm Payments Bank customers will no longer be able to deposit money into their savings accounts, wallets, grocery wallets or Fastags. While Fastags linked to Paytm Payments Bank accounts will remain functional until the balance is depleted, NHAI has advised users to switch to another bank's wallet.
Through an FAQ, Paytm assured its customers that its app and services will function without interruption once the RBI restrictions come into effect. This includes the use of QR codes, sound boxes and card machines. Paytm said users can continue to recharge mobile/internet, pay utility bills, enjoy restaurant deals, book cylinders, and pay piped gas and residential electricity bills.
