Paytm Receives Nod On User Migration to PSP Banks Handles

One 97 Communications Limited (OCL) that owns the brand Paytm, has received go ahead from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles immediately.

This was followed by 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, 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 has started transitioning ‘@paytm’ handles users to these banks, ensuring seamless UPI payments.

The development comes after One97 Communications Ltd-operated Paytm Payments Bank faced Reserve Bank of India’s clampdown on Jan. 31.

In its circular, the regulator, owing to supervisory and regulatory lapses, directed the bank to not accept further credits into its customer accounts and wallets after March 15.

NDTV Profit previously reported that the action was primarily taken due to concerns with inadequate know-your-customer procedures, which led to transactions worth crores of rupees.

Post the fiasco, Vijay Shekhar Sharma, founder and CEO of Paytm also stepped down from the bank’s board and a new, independent team was constituted to ensure arm’s length distance between the operations of Paytm Payments Bank and the parent company.