New Delhi: The Reserve Bank of India (RBI) on Friday banned Paytm Payments Bank Limited ie PPBL (Paytm Payments Bank Ltd.) from adding new customers. Meanwhile, Paytm’s parent company One97 Communications has said that this moratorium will not affect any existing customers of Payments Bank. However, users cannot sign up for Payments Bank’s service until further notice. Meanwhile, existing customers can continue to transact on the Paytm platform.
Users can create a UPI ID
If a new user comes to the Paytm app, then he can sign-up or register for Paytm UPI i.e. create a new UPI ID. Users can link it to existing Paytm Payment Bank account or other bank accounts. However, users cannot sign up for a new PPBL Wallet or PPBL Savings or Current Account until further notice.
Started on 23 May 2017
Paytm Payments Bank started functioning on 23 May 2017. Recently, Moneycontrol had reported that Vijay Shekhar Sharma’s company Paytm Payments Bank is about to apply to RBI for the license of Small Finance Bank (SFB). Sources had told that Paytm Payments Bank can submit the application by June this year.
What is UPI
A facility like Unified Payments Interface (UPI) for digital payments allows you to transfer money easily sitting at home. For this, you need UPI supporting apps like Paytm, PhonePe, BHIM, Google Pay, etc. The special thing is that UPI allows you to transfer money even if you have only one piece of information such as a scanner, mobile number, UPI ID.
UPI is a real-time payment system, which allows instant transfer of money to a bank account through the mobile app. Through UPI, you can link one bank account with multiple UPI apps. At the same time, multiple bank accounts can be operated through one UPI app.
