Paytm Begins User Migration to Different Bank Accounts With NPCI Approval

One 97 Communications Limited (OCL), the parent company of fintech leader Paytm, has initiated the process of transferring its UPI users to new Payment System Provider (PSP) bank handles after receiving approval from the National Payments Corporation of India (NPCI).

According to an official filing on Wednesday (April 17), Paytm announced that NPCI approved the migration of users on Tuesday.

Paytm has accelerated the integration process with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank following OCL receiving the TPAP license from the NPCI last month.

“All four banks are now active on the TPAP, simplifying the process for Paytm to migrate user accounts to these PSP banks,” the company stated.

Paytm has initiated the process of transitioning users of the ‘@paytm’ handle to these banks in order to facilitate smooth UPI payments.

Related: Paytm Struggles On as Government Holds Off on Investing in Paytm Payment Services

It’s worth mentioning that when the Reserve Bank of India put restrictions on Paytm Payments Bank’s services, which included halting its UPI feature, Paytm reached out to several banks. They did this to smoothly transition the nodal account of Paytm Payments Bank to these banks, ensuring that merchants could continue their transactions without interruption.

Recently, Paytm acquired its TPAP license, making it the 25th company to hold such a license. This puts them in the company of other popular apps like Google Pay, PhonePe, and CRED. This license was granted just last month.

With the TPAP license, Paytm can keep offering UPI services through the banks it partners with. These banks are part of the UPI network and enable transactions on platforms like Paytm’s.

In its most recent exchange filing, Paytm announced that it will be utilizing the strong infrastructure of its banking partners to guarantee seamless and secure UPI payments for users and merchants through its app.

A spokesperson for Paytm stated, “We are dedicated to expanding the UPI ecosystem in collaboration with NPCI to reach every part of India.”

Since the tumultuous events beginning in January, Paytm has seen a dip in its UPI transactions. In March, it handled approximately 1.2 billion UPI transactions, marking a decrease from 1.3 billion in February and 1.4 billion in January.

Simultaneously, Paytm’s shares have experienced a significant drop of nearly 50% since the onset of issues with the payments bank at the end of January. As of the latest trading session on Tuesday, the stock closed at INR 391.35 on the BSE.

One 97 Communications Limited (OCL), the parent company of Paytm, is transferring UPI users to new PSP bank handles after NPCI approval. Paytm accelerated integration with Axis Bank, HDFC Bank, SBI, and YES Bank post TPAP license acquisition. The company aims for seamless UPI payments through these banks and assures an expanded UPI ecosystem. However, a decline in UPI transactions and a substantial drop in stock prices signify challenges faced by Paytm. Despite these issues, Paytm remains committed to enhancing UPI services and collaborations within the Indian market.