What to do if you have a Paytm UPI handle? RBI advises this
Paytm app, after the latest orders from the banking authorities? However, customers can heave a sigh of relief as unified payments interface (UPI) payments will not be affected through any of the latest directives. In its latest order, the Reserve Bank of India (RBI) asked the National Payments Corporation of India (NPCI) to examine the possibility of migrating Paytm Payments Bank Limited (PPBL) customers using the UPI handle '@paytm' to 4-5 other banks, in order to prevent any disruptions in the payment ecosystem.
On Friday, the central bank came out with additional steps for the benefit of customers, wallet holders and merchants who are availing banking services from Paytm Payments Bank, which has been barred from accepting deposits and credits after March 15, 2024. ‘’As PPBL cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the bank, and minimise concentration risk in the UPI system by having multiple payment app providers, said the RBI said in a statement.
“NPCI has been advised by the RBI to examine the request of One97 Communication (OCL) to become a third-party application provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms," said the central bank. To keep Paytm QR codes running, the company may open settlement accounts with one or more banks, according to RBI.
RBI further said that in the event of NPCI granting TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner from PPBL to a set of newly identified banks to avoid any disruption. "No new users are
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