As Paytm users prepared for major changes amidst regulatory actions, questions loom over the future of their transactions and banking experiences. With the Reserve Bank of India's (RBI) deadline to ban Paytm Payments Bank Limited (PPBL) drawing near, ending today, March 15, the question arises: how will these alterations impact millions of users and merchants?
Paytm's UPI transaction
The National Payments Corporation of India (NPCI) recently granted One97 Communications Limited (OCL), the parent company of Paytm, approval to continue Unified Payments Interface (UPI) transactions under a multi-bank model.
Despite the impending ban on PPBL, Paytm users can have a seamless operation as NPCI has allowed the digital payments giant to maintain UPI transactions through four major banks: SBI, Axis Bank, HDFC Bank, and YES Bank.
New UPI handles
In a bid to ensure uninterrupted service, Paytm has announced five UPI handles in collaboration with four partner banks. Among these, the existing handle '@paytm' stands prominent, offering seamless continuity for users. The NPCI has given approval for '@paytm' and a closed user group UPI handle '@ptyes' in partnership with Yes Bank. Additionally, NPCI has sanctioned '@pthdfc' with HDFC Bank and '@ptsbi' with State Bank of India as partners. However, these two handles are not yet operational.
Implications of PPBL ban
The RBI's directive to ban PPBL from accepting deposits, credits, or top-ups after March 15 has significant implications for Paytm users. Customers holding savings or current accounts with PPBL will no longer be able to deposit funds into their accounts. However, they can still use existing balances for transactions and withdrawals, ensuring continued access to their finances within prescribed limits.
Paytm's partnerships
In response to regulatory constraints, Paytm is forging strategic partnerships and adapting its operations. With NPCI's approval as a third-party application provider (TPAP), Paytm collaborates with Axis Bank, HDFC Bank, State Bank of India, and YES Bank under a multi-bank model for UPI transactions. YES Bank's role as a merchant acquiring bank underscores Paytm's commitment to seamless payment facilitation.
Paytm FASTag transfer to other platforms
Beyond payment banking, the National Highways Authority of India (NHAI) has issued an advisory for Paytm FASTag users to get a new FASTags issued by alternative banks before the March 15 deadline. While existing balances can still be used for toll payments, transfer to new FASTags ensures continued accessibility on national highways beyond the set out date.
Paytm shares
The shares of Paytm on Friday at 12:20 pm IST were trading at Rs 370.70, up by 5 per cent on BSE and on NSE, the fintech firm shares surged 5 per cent at Rs 370.70. The market valuation of the company stood at Rs 23,567.50 crore.
