RBI says Paytm handles to migrate seamlessly from PPBL to other banks. Issues guidelines to customers and merchants

RBI asks NPCI to look into One97 Communication's plea to become TPAP for UPI usage

February 23, 2024

RBI comes out with another set of measures to mitigate woes of Paytm customers

Protecting the customers of Paytm, the Reserve Bank of India (RBI) on February 22 said customers and merchants having ‘@paytm’ handles are to be migrated seamlessly from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. RBI said that the National Payments Corporation of India (NPCI) may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high-volume UPI transactions.

NPCI will facilitate seamless migration of the ‘@paytm’ handle to other banks, the RBI said. The customers and merchants having UPI address or handles other than ‘@paytm’ need not be required to migrate and continue to use so, the central bank added.

“It is reiterated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, may make alternative arrangements before March 15, 2024, to avoid any inconvenience,” said RBI. Recently, frequently asked questions (FAQs) released by the central bank on the PPBL issue clarified that to continue receiving payments, merchants need to obtain fresh QR codes linked to an account with a different bank or wallet before March 15, 2024.

The FAQ also said that merchant customers with Paytm Payments Bank are suggested to get a new QR code linked with other banks’ accounts in order to use Paytm’s soundbox and POS terminal services after March 15. The RBI also said merchants can change their bank account details through their service provider.

“After March 15, 2024, you will not be able to receive any credit into your bank account or wallet with PPB other than refunds, cashback, sweep-in from partner banks, or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments,” RBI said.

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