RBI’s Message for Paytm UPI Users Revealed! Check Now for Important Details

The recent directive from the Reserve Bank of India (RBI) has left Paytm UPI users pondering about the future of their digital transactions. Following restrictions imposed on Paytm Payments Bank, which will cease to accept deposits after March 15, 2024, the RBI has urged the National Payments Corporation of India (NPCI) to consider One97 Communication Ltd's (OCL) request to become a Third-Party Application Provider (TPAP) for the UPI channel. This move aims to ensure uninterrupted digital payments for '@paytm' users, as the current situation necessitates additional measures to maintain the smooth functioning of the UPI channel operated by Paytm Payments Bank. The RBI emphasized the need for seamless migration of existing '@paytm' handles to other identified banks to prevent disruptions in services. If NPCI grants TPAP status to OCL, it may require the seamless migration of '@paytm' handles from Paytm Payments Bank to other identified banks to prevent disruptions. Additionally, no new users can be added by OCL until all existing users are satisfactorily migrated to a new handle. Furthermore, NPCI may certify 4-5 banks as Payment Service Provider (PSP) Banks to process high-volume UPI transactions, facilitating the migration of '@paytm' handles. This aligns with NPCI norms to minimize risk concentration and ensure the stability of the payment ecosystem. For merchants using Paytm QR Codes, OCL may open settlement accounts with one or more PSP Banks, excluding Paytm Payments Bank. It's crucial to note that the migration of UPI handles applies only to users and merchants with a '@Paytm' handle, while others with different UPI addresses don't need to take any action. In light of these developments, customers with accounts/wallets at Paytm Payments Bank are advised to make alternative arrangements with other banks before March 15, 2024, as previously advised by RBI. Similarly, users of FASTag and National Common Mobility Cards issued by Paytm Payments Bank should also make alternative arrangements to avoid inconvenience before the mentioned date. RBI reiterated that these actions are taken solely to protect customers and the payment system from potential disruptions, and they are separate from any regulatory actions initiated by RBI against Paytm Payments Bank. As the situation unfolds, users await further clarity on the transition process and its impact on their digital payment experience. #techgossip