There is latest development in Paytm Payments Bank as it was earlier ordered by the RBI to stop its operations by March 15.
Using Paytm After 15 March
As per this development, India’s National Payments Corporation of India (NPCI) has now approved a third-party app license for Paytm.
With the help of this approval, now users will be allowed to access UPI even after March 15.
It appears that the One97 Communications, parent company of Paytm, has got five handles in partnership with four banks to continue UPI transactions, as per the information mentioned in the NPCI website.
Following the development, NPCI has approved @paytm and UPI handle @ptyes for Paytm in partnership with Yes Bank, @pthdfc withHDFC bank and @ptsbi with State Bank of India as a partner.
Please note here that these two handles are not active immediately, as per the media report.
Besides these handles, if you are using the company’s existing handle @paytm then no worries there as notably this is also among the five handles that paytm users can continue using as of now.
Migration For All Existing Handles
According to the National Payments Corporation of India (NPCI), Axis Bank, HDFC Bank, State Bank of India, and Yes Bank will act as partner banks to Paytm as per its announcement in a statement.
Further, NPCI noted that Paytm has been advised to complete the migration for all existing handles and mandates, wherever required, to new payment system provider banks at the earliest.
Prior to this, Paytm used to carry out its all UPI transactions through Paytm Payments Bank (PPBL).
But now, it’s not possible as the bank is barred by the Reserve Bank of India from accepting deposits, credit transactions, or top-ups in any customer accounts after March 15.
Following the development, Paytm UPI payments declined for the month of February as compared to the january.
During this time period, Paytm processed 1.41 billion monthly transactions of rupees 1.65 trillion as compared to 1.57 billion transactions of Rs 1.93 trillion in January, as indicated by the NPCI data.
It seems that NPCI is most likely to give a third-party application provider (TPAP) license to Paytm.
But, the chances of extension on the March 15 deadline, set for Paytm Payments Bank to stop its operations by the RBI, are very less.
Earlier in its older release, RBI said, “No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024.”
