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| Paytm's Transition to Multiple Banks for Seamless UPI Payments |
In recent developments, Paytm has received official approval from the National Payments Corporation of India (NPCI) to transition its users to other banks for Unified Payments Interface (UPI) based payment services. This transition comes in response to a directive from the Reserve Bank of India (RBI) instructing Paytm Payments Bank to cease basic banking services by March 15, 2024.
Integration with Major Banks:
Paytm has successfully integrated with four major banks - State Bank of India, Yes Bank, HDFC Bank, and Axis Bank. This integration paves the way for the seamless migration of Paytm users to these banks, ensuring the continuity of their payment services.
NPCI Approval and TPAP Model:
NPCI's approval on March 14, 2024, marked a significant milestone for Paytm's transition. Under the Third-Party Application Provider (TPAP) model, Paytm can now operate with multiple banks for UPI payment services. This model enhances reliability, security, and the overall user experience, aligning with regulatory standards while fostering the growth of the UPI ecosystem.
New Virtual Payment Addresses (VPAs):
With the transition to partner PSP banks, Paytm users can now create new VPAs. These VPAs, in the format of @ptsbi, @pthdfc, @ptaxis, and @ptyes, correspond to the respective partner banks. This transition ensures a smooth shift to the new UPI IDs, maintaining continuity in payment transactions.
About Paytm:
Founded in 2010 by Vijay Shekhar Sharma, Paytm is an Indian multinational financial technology company. It offers a wide range of digital payment services, including mobile recharges, utility bill payments, and QR code-based transactions. Paytm has been a pioneer in the Indian payment landscape, introducing innovations such as the Paytm Wallet in 2014 and Paytm Payments Bank in 2017.