2024-02-21 By Surbhi Chauhan News

“Paytm Considering Partnerships with HDFC Bank and SBI for UPI Payments Ahead of RBI Deadline”


The Reserve Bank of India (RBI) has set a deadline for Paytm Payments Bank to cease its transactions and deposits by March 15 due to irregularities. According to a report by Business Standard, Paytm Payments Bank may need three to six months to transfer its customers' accounts to alternative banks amid the ongoing regulatory crackdown.


Reportedly, all existing Paytm customers may require up to six months to transition to other banks, which exceeds the RBI's deadline for halting transactions for the bank. In response to this situation, Paytm is reportedly exploring the option of obtaining a third-party application provider (TPAP) license from the National Payments Corporation of India (NPCI). This move would enable Paytm to continue facilitating UPI payments through its app, ensuring uninterrupted service for its customers.


This development arises from concerns within One 97 Communications, the parent company of Paytm Payments Bank, that the RBI may revoke the bank's license due to the ban on deposits and transactions after March 15. The migration of Paytm's vast customer base to another payment service provider (PSP) is expected to be a time-consuming process, lasting anywhere from three to six months, as per sources cited by Business Standard.


Despite these challenges, it is anticipated that the virtual payment addresses ending with "@paytm" will remain operational post-March 15. However, there is a looming threat to Paytm's UPI transactions if the RBI decides to cancel its banking license, potentially disrupting Paytm's UPI operations entirely.