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In response to the directive from the Reserve Bank of India (RBI) in March 2024, Paytm Payments Bank is undergoing significant changes to ensure uninterrupted digital payments for its UPI customers. The RBI announced that Paytm Payments Bank would no longer be able to accept credits into its customer accounts and wallets after March 15, 2024.

To address this, the National Payments Corporation of India (NPCI) has authorized One 97 Communications (OCL), the parent company of Paytm Payments Bank, to transfer its customers' UPI (Unified Payments Interface) payments to other banks.

OCL was authorised by NPCI to function as a Third-Party Application Provider (TPAP) in a multi-bank paradigm as part of this transformation. This implies that Paytm is now able to provide UPI services via affiliated banks.

Following NPCI's approval on March 14, 2024, Paytm has expedited its integration with several major banks, including Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. These banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these partner banks.

To facilitate the transition, Paytm is introducing new UPI handles for its users. Eventually, users' current UPI IDs with "@paytm" will be replaced with new IDs provided by partner banks:

• SBI UPI handle: "@ptsbi"
• HDFC Bank UPI handle: "@pthdfc"
• Axis Bank UPI handle: "@ptaxis"
• Yes Bank UPI handle: "@ptyes"

Additionally, YES Bank will act as the merchant acquiring bank for existing and new UPI merchants on the Paytm platform. In order to ensure that current users and merchants may continue to complete UPI transactions and AutoPay mandates without any issues, the "@Paytm" handle will be moved to YES Bank.

To switch to the new UPI handles on the Paytm app, users can follow these steps:

• The first step is to download the Paytm UPI mobile payment app.
• Step 2: Type your phone number in. If your phone has two SIM slots, select the one that has your phone number on it.
• Step 3: Send an SMS from your phone number to confirm your mobile number.
• Step 4: Choose your bank from the list and confirm that the mobile number on file with your bank matches it. We'll retrieve the details of your bank account.
• Step 5: If this is your first time connecting the bank, create a UPI PIN. For this, you'll need the details from your debit card.
• Step 6: You are now prepared to make your first payment after linking your bank account to UPI.

How to modify Paytm's default bank account

• Toggle between "UPI & Payments Settings" and "Profile menu."
• To set a bank account as your default bank account, tap on it.
• Click "Set as default" now, then select "Yes" to confirm.

Paytm has begun transitioning users with the '@paytm' UPI handle to partner banks, ensuring uninterrupted UPI payments.

Some users are already receiving "Important UPI alerts" on the Paytm app, prompting them to switch to the UPI handles of one of the partner banks.

Users can click on the UPI update notification and follow the instructions provided to activate their new UPI ID on the Paytm app.

It's important to note that these changes come in response to the RBI's actions against Paytm Payments Bank earlier in the year. In February, the RBI barred Paytm Payments Bank from providing banking services due to a breach of KYC regulations. This led to a freeze on all essential transaction services via Paytm's various platforms, including UPI, IMPS, Aadhaar-enabled payments, and others, effective March 15, 2024.