Let us tell you that four banks – Axis Bank, HDFC Bank, SBI, Yes Bank will work as payment system providers of Paytm. This information has been given by National Payments Corporation of India.
Four banks – Axis Bank, HDFC Bank, SBI, Yes Bank – will work as payment system providers for Paytm. National Payments Corporation of India (NPCI) has approved Paytm-owned One97 Communications Ltd to participate as a Third Party Application Provider (TPAP) in the UPI system under the multi-bank model. NPCI informed that Yes Bank will act as the merchant acquisition bank for Paytm transactions to existing, new UPI merchants.
What did NPCI say?
NPCI said- This arrangement will enable Paytm’s existing users and merchants to continue UPI transactions, auto payment consent seamlessly. At the same time, Paytm has been advised to transfer all existing handles and consents, wherever necessary, to the new payment system provider banks as soon as possible. This decision of NPCI has come a day before the deadline of the Reserve Bank, in which customers and businessmen of Paytm Payments Bank Limited (PPBL) have been asked to transfer their accounts to other banks by March 15. Let us tell you that on February 17, Paytm had also transferred its nodal accounts with Axis Bank.
RBI had advised to help
Recently, the Central Reserve Bank had asked the National Payments Corporation of India to help in continuing the UPI operations of the Paytm app. The Reserve Bank had asked NPCI to explore the possibility of becoming a ‘third party app’ provider to enable UPI customers to make digital payments without any hassles using the handle operated by Paytm Payments Bank.
What will continue after March 15
Users and merchants should keep in mind that the Paytm app is functional and will continue to function even after March 15, 2024. For example, Paytm QR code, soundbox and card machines will also remain fully operational. Similarly, all other services including ticket booking of movies, events, travel (metro, flight, train, bus) will remain fully operational on the Paytm app. Users can continue to recharge their mobile phones, DTH or OTT subscriptions and pay all utility bills (electricity, water, gas, internet) through the Paytm app. Users can continue to buy new insurance policies for bike, car, health and others and pay the premium using the Paytm app.
What will happen on fastag
Paytm already offers HDFC Bank Fastags and Fastag recharge of other partner banks is also offered on the Paytm app. However, you cannot buy Paytm Payments Bank Fastags.
