Paytm UPI Service Continues in India After RBI Order

Paytm allowed to continue offering UPI service after RBI issues license to operate as third-party aggregator. Users can manually switch to new UPI IDs from banks like SBI, ICICI Bank, and HDFC Bank.

Rafia Tasleem
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Paytm UPI Service Continues in India After RBI Order

Paytm UPI Service Continues in India After RBI Order

Paytm, a leading digital payments platform in India, has been allowed to continueoffering its UPI(Unified Payments Interface) service after facing issues due to an order from the Reserve Bank of India (RBI). The RBI had initially directed Paytm to shut down its Payments Bank, causing inconvenience to many users. However, the platform has now been granted a license to operate as a third-party aggregator, similar to other popular payment apps like Google Pay and WhatsApp Pay in India.

Why this matters: The continued operation of Paytm's UPI service has significant implications for the digital payments landscape in India, as it ensures minimal disruptions to users and maintains competition in the market. This development also highlights the RBI's efforts to regulate and promote the growth of digital payments in the country.

As a result of this development, Paytm users can now manually switch to new UPI IDs from banks such as SBI, ICICI Bank, and HDFC Bank. Existing Paytm users were informed that their current UPI IDs would no longer be available and would need to be replaced with new ones. To switch to a new UPI ID, users can follow a simple process within the Paytm app, which involves selecting a new UPI ID from a list of available banks and authenticating it using SMS verification.

The ability to switch to new UPI IDs allows Paytm users to continue relying on the platform without major disruptions. This development ensures that Paytm can maintain its operations and provide minimal downtime for its users. The article was last updated on May 4, 2024, indicating the current status of Paytm's UPI service.

The UPI ecosystem in India has witnessed significant growth and expansion in recent years. In April, UPI transactions experienced a slight decline compared to March, with a total value of Rs 19.64 lakh crore and 13.30 billion transactions. Despite this dip, UPI transactions saw a 50% growth in transaction numbers and 40% growth in total transaction value compared to April last year. The National Payments Corporation of India (NPCI) has also partnered with the Bank of Namibia to introduce a UPI-like real-time payment system in Namibia, marking the first-ever collaboration with a central bank to deploy UPI Stack in an international market.

UPI has transformed the domestic payment space in India and has made strides internationally, with operations in several countries, including Sri Lanka, Mauritius, France, UAE, Singapore, Bhutan, and Nepal. In fiscal year 2024, UPI transactions surpassed 100 billion for the first time, reaching 131 billion in one fiscal year. Transaction volumes witnessed a 55% increase to 13.44 billion in March 2024.

The growth trend for UPI remains promising, with international expansions and technological advancements on the horizon. As NPCI reevaluates its market share policies, stakeholders are anticipating the future of UPI, both domestically and on the global stage. Paytm's ability to continue offering UPI services as a third-party aggregator, along with the manual switching process for users, ensures that the platform remains a key player in the evolving digital payments landscape in India.

Key Takeaways

  • Paytm allowed to continue UPI service after RBI order.
  • Users can manually switch to new UPI IDs from banks like SBI, ICICI, HDFC.
  • UPI transactions in India saw 50% growth in numbers, 40% in value in April 2024.
  • UPI expanding internationally, with operations in 7 countries, including Sri Lanka, UAE.
  • Paytm's continued UPI service ensures minimal disruptions, maintains competition.