Paytm UPI: No more worries about Paytm UPI! Do this now to keep payments going

Paytm UPI: There’s a crucial update for Paytm users. Due to recent strict measures by the Reserve Bank of India (RBI), many questions have arisen among users regarding Paytm’s UPI services, especially the @paytm handle. Although the old handle is still functional, it is wise to understand the situation and take necessary steps to ensure uninterrupted services in the future. Let’s dive into the reasons behind this change and what you need to do.

Why Was This Change Implemented?

The primary reason for this change is the severe business restrictions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank Limited (PPBL). Previously, your @paytm UPI handle was directly linked to Paytm Payments Bank. However, following the RBI’s directive, PPBL can no longer accept new deposits or top-ups from customers.

To prevent disruption of UPI services for users in this situation, the National Payments Corporation of India (NPCI) has granted Paytm’s parent company, One97 Communications Ltd. (OCL), permission to operate as a Third-Party Application Provider (TPAP). This allows the Paytm app to continue its UPI services through other banks.

What Does This Mean for You?

Under this new arrangement, Paytm has partnered with four major Indian banks: State Bank of India (SBI), HDFC Bank, Axis Bank, and Yes Bank. This has led to the following changes:

• The old @paytm handle is still active: Your old @paytm UPI handle has not been deactivated. It has been technically redirected to Yes Bank to ensure that your regular UPI payments and AutoPay mandates for EMIs, bill payments, or subscriptions are not blocked.
• New UPI IDs are being created: Paytm is gradually rolling out new UPI IDs for its users, which will end with handles like @ptsbi, @pthdfc, @ptaxis, or @ptyes instead of @paytm. Many users have already started receiving in-app notifications to activate these new UPI IDs.
• Auto-Pay services are secure: Since the old handle is still active, your AutoPay services will continue to function for now. However, migrating to a new handle is crucial for long-term security.

What Should You Do?

Although your services have not been stopped, it is advisable to take the following steps to avoid any future issues:

1. Check for in-app notifications: Open your Paytm app and look for any “Important UPI Alert” or notification prompting you to create or activate a new UPI ID.
2. Activate the new UPI ID: If you have received a notification, follow the in-app instructions to create a new UPI ID with your preferred partner bank (SBI, HDFC, Axis, or Yes Bank).
3. Set it as your default account: After creating the new UPI ID, set it as your default payment option to ensure all future transactions are processed through it.

Taking these small steps will protect you from any potential transaction-related problems in the future and ensure a seamless digital payment experience.