Airtel Payments Bank has experienced a remarkable surge in new customers applying online for various services, including bank account openings and FASTags, over the past few days, according to its chief executive officer Anubrata Biswas, PTI reported. While Biswas did not explicitly confirm a direct correlation to users shifting from Paytm Payments Bank following the RBI‘s action on January 31, he acknowledged the substantial increase in digital product applications. The RBI directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. Despite nudges and warnings over some time, persistent non-compliance with regulatory guidelines led to stern action against the fintech. The RBI has clarified that there are no systemic concerns.
Speaking about the performance and operational metrics of Airtel Payments Bank, Biswas said, “All our digital products, be it customers who have an account applying for fixed deposit, be it new customers applying online for bank account or customers applying for FASTag, all are 5-7 times the January rates. This has happened over the last few days.”
The online application for digital products, such as savings bank accounts and FASTag products, has grown 5-7 times in the last few days, according to Biswas.
“There seems to be a swelling of uptake on Bank’s products for whatever context there may be…,” he said. On the other hand, Paytm Payments Bank is reportedly witnessing a gradual decline in transaction volumes. Customers are uncertain about the future, contributing to the drop in transactions. However, sources familiar with the matter suggest that there has only been a 10 per cent-15 per cent decline in transaction volumes handled via Paytm Payments Bank so far, reported Reuters. If the pace doesn’t quicken, there is speculation that the central bank may consider extending the deadline, it added.
Paytm to operate as third-party app for UPI: Report
One97 Communications Limited, the parent firm of crisis-hit Paytm, is focusing on the third-party payment app (TPAP) route to ensure that the fintech major’s Unified Payments Interface (UPI) remains available to its users, according to an Economic Times report.
“Since Paytm Payments Bank will stop offering payment services, Paytm will become a third-party app going forward, integrating UPI through other lenders,” the reported quoted a person aware of the development, as saying. Accordingly, One97 Communications Limited has initiated discussions with the National Payments Corporation of India (NPCI), which runs the UPI ecosystem in the country, the person added.
Currently, people using Paytm for UPI payments, have virtual payment addresses (VPAs) ending in @paytm. After March 1, however, customers might find this VPA changing to some other bank’s handle. Source: HT