RBI says ‘@paytm’ handles to migrate seamlessly from PPBL to other banks

For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions, the RBI said

The Reserve Bank of India (RBI) on February 22 said customers and merchants having ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption.

For seamless migration of ‘@paytm’ handle to other banks, 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, the RBI said.

The customers and merchants having UPI address or handles other than ‘@paytm’ need not required to migrate and continue to use so, the central bank added.

Recently, frequently asked questions (FAQs) released by the central bank on the PPBL issue had clarified that in order 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.

On January 31, the RBI imposed major business restrictions on PPBL, including a bar on accepting fresh deposits and doing credit transactions after February 29. On February 16, it extended the deadline to March 15.

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.

"After March 15, 2024, you will not be able to receive any credit into your bank account or wallet with PPB other than refunds, cashbacks, 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.

The central bank also said merchants can change their bank account details through their service provider.