To fast track the pace at which payment transactions are effected, Paytm Payments Banks today unveiled BHIM UPI on its platform. With this launch users shall be able to develop their own Paytm BHIM UPI id that shall be issued by the payments bank. The launch is also expected to boost business sentiment for the company's several merchants.
The launch follows the RBI directive that asked KYC compliant prepaid payments instruments PPIs including mobile wallets to be interoperable within the timeframe of six months. Also, as a step to further promote digital payments, the integration of BHIM and Paytm has been made a year after the government's demonetisation drive.
The users can create Paytm BHIM UPI id and link it with any of their savings bank account to start receiving or sending money. As BHIM does away with the need to add a beneficiary, the transactions using this channel shall be effected much faster.
In accordance with the guidelines of NPCI or National Payments Corporation of India, users can transfer maximum Rs. 1 lakh in a day using BHIM UPI while in case of receipts there is no such limit.
Renu Satti, managing director and chief executive officer, Paytm Payments Bank "As a part of our journey of being a truly open payment platform, consumers and merchants should both have a complete range of choices to select payment source and destination. With the availability of BHIM UPI to our large user base and merchant network, we believe the next wave of digital payments will begin soon".
Currently, mobile wallets such as Paytm lack interoperability and its integration with BHIM that allows direct transfer across bank accounts shall enable high volume of digital transactions by the company's user base.