Paytm Begins Migration Of Users To Other Bank Handles Following NPCI’s Nod

One 97 Communications Limited (OCL), the parent entity of fintech major Paytm, has begun migrating its UPI users to new payment system provider (PSP) bank handles after getting the nod from the National Payment Corporation of India (NPCI).

In an exchange filing on Wednesday (April 17), Paytm said the NPCI gave its nod to migrate the users on Tuesday. 

Paytm said it expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank after OCL received the TPAP licence from the NPCI last month.

“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.

Paytm has started transitioning ‘@paytm’ handle users to these banks to ensure seamless UPI payments. 

It is pertinent to note that following the Reserve Bank of India’s (RBI) clampdown on Paytm Payments Bank’s operations, which also stopped its UPI facility, Paytm tapped multiple banks to shift the nodal account of Paytm Payments Bank to these banks. This ensured seamless merchant transactions as earlier.

Paytm became the 25th TPAP licence holder, joining others including Google Pay, PhonePe, and CRED, after getting the nod last month.

The TPAP licence allowed Paytm to continue its UPI operations through the aforementioned PSP banks. These banks are members of UPI that allow the transaction on the TPAP licence holder’s platform. 

In its latest exchange filing, Paytm said that by leveraging the robust infrastructure of its banking partners, Paytm would ensure uninterrupted and secure UPI payments for both users and merchants through its app.

“We are committed to grow the UPI ecosystem in partnership with the NPCI to every nook and corner of India,” a Paytm spokesperson said.

Amid the fiasco since the end of January, Paytm’s UPI transactions have already taken some hit. In March, it processed around 1.2 Bn UPI transactions, a decline from 1.3 Bn transactions in February and 1.4 Bn in January.

Meanwhile, Paytm shares have lost almost 50% since the start of the payments bank trouble at the end of January. The stock closed the last trading session (on Tuesday) at INR 391.35 on the BSE.