OCL, Paytm’s parent firm, has initiated the migration process of its customers to new payment service provider banks after the NPCI gave its nod for the same.
Paytm User Migration: Following on the heels of the crisis witnessed by the Paytm Payments Bank, One 97 Communications Limited (OCL), Paytm’s parent firm, has initiated the migration process of its customers to new payment service provider banks (PSBs). OCL started the migration after the National Payment Corporation of India (NPCI) gave its nod for the same.
This information was shared by the company via a press release on Wednesday which said that “the migration process was initiated after the company received a green signal from the National Payment Corporation of India (NPCI)”.
Now, under the new arrangements, Paytm customers will be transferred to partner payment service provider (PSP) banks including Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank, reported Mint.
“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 now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks,” the company said in its stock exchange filing on Wednesday.
How Does New Arrangement Affects Paytm Users?
Once a Paytm user has been migrated to another partner payment service provider (PSP) bank then the present UPI ID with ‘@paytm’ of these users will change to a new UPI ID with any of the four id: @ptsbi, @pthdfc, @ptaxis, and @ptyes.
Reserve Bank of India’s Action On Paytm Payments Bank
Paytm has initiated migration on third-party application provider (TPAP) after the Reserve Bank of India (RBI) asked the Paytm Payments Bank Limited (PPBL) to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after March 15. The direction came after the central bank found irregularities and non-compliance in payments, reports Mint.
To continue its services, Paytm has tied up with certain banks to continue its function after the deadline. These banks include HDFC Bank, SBI, Yes Bank, and Axis Bank as its payment service provider banks to be its partners in the TPAP.
The Reserve Bank of India (RBI) issued an advisory on February 23 instructing Paytm Payments Bank customers to examine the possibility of migrating UPI services to other banks by March 15, 2024, following regulatory concerns that led to restrictions on the bank’s operations.
The RBI’s directive was aimed at ensuring a seamless transition for customers and maintaining the efficiency of the payment ecosystem.