Mumbai: The migration of merchant customers from Paytm to the new Payment System Provider (PSP) bank handles has been completed, said Paytm founder Vijay Shekhar Sharma.
This comes after the fintech company received approval from National Payment Corporation of India (NPCI) to commence user migration last week.
Launching the new sound box on Tuesday at a virtual press meet, Sharma said that Yes Bank, which is one of the PSP banks, can decide if it wants to conduct additional due diligence of these merchants that have been switched.
“Migration of merchants has been completed and the system is running with Yes Bank as the back end,” said Sharma.
Read more: Paytm begins user migration to new UPI IDs; here is how it will affect you
Under the new process, Paytm customers will be transferred to PSP banks including Axis Bank, HDFC Bank, SBI and Yes Bank. A PSP is a bank that helps the UPI app to connect with the banking channel. Only banks can act as PSPs.
Paytm until now used Paytm Payments Bank Ltd (PPBL), an associate company of OCL as the PSP bank for settlements. This came to a stop after the Reserve Bank of India ordered the payments bank to shut down basic banking services by 15 March citing supervisory concerns and persistent non-compliance with rules.
Read more: Paytm begins user migration to new UPI IDs; here is how it will affect you
Sharma, however, declined to give any clarity on the future of the payments bank which recently saw the exit of its managing director and chief executive officer Surinder Chawla.
“I, personally or anyone from OCL, have no connection with the payments bank,” said Sharma. “There is an independent board taking care of everything and we have full faith in their capability.”
Read more: Paytm NPCI Licence: Paytm gets third-party licence before March 15 deadline
One97 owns 49% in the payments bank, and Sharma holds the remaining 51%.
In February, Sharma stepped down as non-executive chairman and board member of Paytm Payments Bank, following RBI’s order. The company also rejigged the bank board by appointing a new chairman and other external board members.
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Published: 22 Apr 2024, 08:26 PM IST