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 don’t need to complete the KYC process to make UPI transfers on the Paytm app. However, when you register, you will need to link your bank accounts.

Linking your bank account with Paytm simplifies the process because the KYC verification is already done by your bank. In other words, once your bank account is linked, you are automatically verified on Paytm based on your bank’s prior verification.

Here’s what you should know:

• Instant Access: After registering, you can send money to any UPI app user, scan QR codes for payments, and receive money on your Paytm QR code without any delays. You can also start using UPI, credit/debit cards, and net banking right away without any KYC verification.
• Consistent UPI Handle: Your UPI handle and PIN remain the same across different apps, ensuring convenience in transactions.
• Multiple UPI IDs: You can create multiple UPI IDs on Paytm for use on various platforms, giving you more flexibility in managing your payments.

This means you can enjoy all the services Paytm offers without needing to complete a separate KYC process.

How to Set Up UPI Account on Paytm?

Step 1: Download the Paytm app on your phone.

Step 2: Open the app and sign in with your mobile number, then follow the prompts to set up your profile.

Step 3: Tap on your profile icon in the top left corner of the screen.

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 and select one as your default account for receiving money. Now you’re all set to use UPI on Paytm!

How to Make a UPI Transaction on Paytm?

Step 1: Open the Paytm mobile app on your phone and log in.

Step 2: Click on the “To Mobile or Contact” option.

Step 3: Enter the recipient’s mobile number or select their contact from your phone’s contact list.

Step 4: Alternatively, you can use the “Scan & Pay” option to send money by scanning the receiver’s QR code.

Step 5: Click the “Pay” button and enter the amount you want to transfer.

Step 6: Confirm the bank account you want to use for the transfer, which will be displayed above the “Pay” button.

Step 7: Enter your UPI PIN to complete the transaction.

Step 8: The amount will be transferred to the recipient within a few seconds.

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.