Is KYC Required For UPI Money Transfer On Paytm? Here’s The Answer!

KYC (Know Your Customer) is mandatory for a few simple reasons. Firstly, it is required by law to prevent financial crimes like money laundering and fraud. By verifying customer identities and gathering necessary information, KYC ensures compliance with regulations. Secondly, it helps financial institutions assess the risk associated with a customer’s transactions, allowing them to identify and address potential risks. 

Lastly, KYC enhances security by reducing the risk of identity theft and unauthorized account access. It also builds trust between financial institutions and customers by demonstrating commitment to due diligence and compliance.

Is KYC Required for UPI Money Transfer on Paytm?

No, you do not need to complete the KYC process to make UPI money transfers on the Paytm app. However, when you register on the Paytm app, you are required to link your bank accounts with the app. This ensures that the necessary KYC takes place during the account linking process. 

When you link your bank account with the Paytm app, you don’t need to go through a separate verification process. This is because the banks have already performed the KYC check for all their users, and that verification carries over to Paytm. In simpler terms, once your bank account is linked, you are automatically considered verified on Paytm due to the prior verification done by the banks.

How to Set Up UPI Account on Paytm?

Step 1: Download the Paytm app on your phone.

Step 2: Sign in using your mobile number and follow the prompts to complete your profile setup.

Step 3: Once logged in, tap on your profile icon in the top left corner.

Step 4: Choose ‘UPI & Payment Settings’ from the menu.

Step 5: Select ‘Add bank account,’ pick your bank, and enter your account details. Don’t forget to set up your UPI PIN.

Step 6: You can add multiple bank accounts to your Paytm and choose one as your default for receiving money.

How to Make a UPI Transaction on Paytm?

Step 1: Open the Paytm app on your smartphone.

Step 2: Choose the option “Scan and Pay” or use the QR code scanner feature on the main screen. (refer to the given image)

Step 3: Enter the mobile number or name of the receiver. You can select the contact from your phone book or manually enter the number.

Step 4: On the next screen, click on “Pay” and enter the amount you wish to send.

Step 5: Select the preferred mode of payment and proceed. Add a remark or description (optional) to specify the purpose of the transaction.

Step 6: Finally, click on “Pay” to complete the transaction and send money to the receiver.

Conclusion: KYC is mandatory for financial institutions to prevent financial crimes and enhance security. However, for UPI money transfers on Paytm, a separate KYC process is not required. Simply linking your bank account with Paytm is enough for verification.