The Reserve Bank of India has issued additional steps and a roadmap for the smooth transition for users of Paytm Payments Bank (PPBL) and those with @paytm handles.
This comes on the back of its 15th March deadline, after which, PPBL cannot accept any deposits or carry out credit transactions.
RBI has advised NPCI to examine the request of One97 communications (Paytm's parent) to become a 3rd party application provider to continue UPI operations of the Paytm app.
If NPCI grants Paytm this status, all @paytm handles must be migrated from the Paytm Payments Bank to a set of newly identified banks to avoid disruption.
Also read/watch - Paytm app downloads plummet after RBI restrictions; BHIM UPI sees 49% surge
For this, NPCI can facilitate certification of 4-5 banks as payments service providers to process high volume UPI transactions. This is to minimise concentration risk. RBI also has specified that no new users can be added until all existing users are migrated.
For the merchants using PayTM QR Codes, Paytm may open the settlement accounts with other payment service provider banksIn what is important information for users, RBI clarifies that only those UPI handles will need to be migrated for those users who have @Paytm as their UPI handle. For the rest who have UPI handles other than @paytm, no action would need to be taken.
Also, customers who have their wallet or underlying account as Paytm Payments Bank will need to make alternate arrangements with other banks before March 15th.
RBI also reiterates that holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, will also have to migrate, since no new topups will be allowed after March 15th.