RBI Directs Paytm to Migrate UPI Operations to New Banks

The Reserve Bank of India has mandated Paytm to transition its UPI services to a set of newly identified banks to ensure uninterrupted digital transactions.

The RBI has instructed Paytm to become a third-party application provider for UPI, pending approval from the National Payments Corporation of India.
Paytm's UPI operations are to be migrated seamlessly to newly identified banks, with no new users to be added until the migration is complete.
Paytm Payments Bank has been prohibited from accepting new deposits or credits in customer accounts after February 29, with an extension granted until March 15.
Customers can use funds in their Paytm accounts until depleted but cannot add new funds after March 15.
Paytm has partnered with Axis Bank for merchant settlements and insists its QR codes and devices will continue to function post-deadline.