Paytm gets NPCIs approval to be a third-party UPI app: Heres what it means

Paytm’s parent company, One97 Communications Limited (OCL), has finally received approval from the National Payments Corporation of India (NPCI) to become a third-party UPI app. Since the Paytm Payments Bank has been banned by the regulatory body, four other banks will act as partners to Paytm, facilitating UPI services on the app. Also Read: UPI Meets ChatGPT: India Tests AI-Powered E-Commerce Payments Via OpenAI Partnership

Paytm gets nod to become a third-party UPI app

Paytm will now offer payment services in partnership with four banks – YES Bank, Axis Bank, HDFC Bank, and State Bank of India. Also Read: No PIN Needed: Google Pay, Paytm, And PhonePe Users Can Pay Using Fingerprint Or Face Scan

“Four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Paytm System Provider) banks to OCL. YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. “@Paytm” handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” stated One97 Communications Limited (OCL). Also Read: Paytm Will Now Remind You About Your Pending Expenses! Here’s How To Use It

NPCI has advised OCL to complete the migration process for all existing handles and mandates to new PSP banks at the earliest.

What does it mean for Paytm customers?

Simply put, you can continue to do UPI transactions just as you can now, thanks to handles being redirected to YES Bank. Paytm UPI users will also be able to use AutoPay mandates. This means if you have set AutoPay on your Paytm UPI, it should work as it is now.

However, if you have set AutoPay on Paytm Payments Bank, you must change the bank to any third-party bank. Also, those Paytm users who already have cash in their Paytm wallet/Paytm Payments Bank account will be able to withdraw all the money even after March 15, which is the date when deposits and credit transactions will be banned.

In other news, Paytm FASTag services will also be disabled from March 15. However, just like Paytm wallet and Payments Bank balance, Paytm FASTag users will be able to utilize their FASTag balance even after March 15. But post the said date, Paytm FASTag users will no longer be able to add balance to their accounts.

If you have a Paytm FASTag, you can deactivate it now using two methods – By calling a toll-free number or by directly killing your Paytm FASTag with the help of Paytm chat support.

Once you do that, you will have to get a new FASTag. Read the linked story to see a step-by-step process of deactivating Paytm-offered FASTag and applying for a new one here.