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Paytm's parent company One 97 Communications Limited (OCL), has been granted approval by NPCI to start user migration to new Payment System Provider (PSP) bank handles, as per a filing made by the company to the stock exchanges on Wednesday. This came after the company received approval from NPCI on March 14, 2024, to enlist OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model. Following the approval, Paytm has fast-tracked the integration process with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank, it said in a press release.

Earlier in January 2024, the Reserve Bank Of India imposed major restrictions on the operations of Paytm Payments Bank. It has directed the company to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.

Paytm PSP migration approved by NPCI

"One 97 Communications Limited (OCL) which owns the brand Paytm, India's leading payments and financial services company and the pioneer of QR, soundbox and mobile payments, received go ahead, yesterday from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles immediately," the release said.

All four banks are now functioning on the TPAP, simplifying the process for Paytm to transfer user accounts to these PSP banks.

"The company has started transitioning '@paytm' handles users to these banks, ensuring seamless UPI payments," the release said.

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"We are committed to grow the UPI ecosystem in partnership with NPCI to every nook and corner of India," a Paytm spokesperson said.

Leveraging the robust infrastructure of its banking partners, Paytm ensures uninterrupted and secure UPI payments for both users and merchants through the Paytm app, the release said.

In its filing with stock exchanges, the company said that its communication is in continuation to an earlier letter dated March 14, 2024, vide which "we had informed receipt of approval from the National Payment Corporation of India (NPCI) to the Company to participate in UPI as a Third-Party Application Provider (TPAP) under multibank mode".

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Earlier on March 14, NPCI had approved One97 Communications Limited to participate in UPI as TPAP under the multi-bank model.

What changes for Paytm users?

After this update, all Paytm UPI users will receive a prompt to consent via a pop-up notification for using Paytm with a new UPI ID. You can choose from one of the four options: @ptsbi, @pthdfc, @ptaxis, and @ptyes.