Is KYC required to use UPI on Paytm? It is required during the onboarding process on Paytm. KYC, or Know Your Customer, is a way to verify the identity of a user. The Reserve Bank of India (RBI) has made it mandatory for regulated entities to complete KYC before offering certain financial services. KYC on Paytm takes just a few minutes and can easily be done online, making the process quick and hassle-free. In this blog, we’ll answer common questions like “Can I send money via Paytm without doing KYC?” and “Do I need full KYC for UPI transfers in Paytm?” In this blog, we will explain why KYC is required to use UPI on Paytm.
Is KYC Mandatory for UPI Transfer in Paytm?
Full KYC is not mandatory for UPI transactions on Paytm. UPI works by directly linking your bank account to Paytm, so once your bank account is verified, you can start making payments without completing full KYC. This means you can enjoy all the essential UPI features such as:
- Sending and receiving money instantly — Transfer funds to friends, family, or merchants anytime without extra steps.
- Scanning QR codes for payments — Make quick payments at shops, restaurants, and online platforms using Paytm’s QR scanner.
- Accessing multiple UPI IDs — Manage more than one UPI ID within Paytm for added flexibility and convenience.
- Checking balances and viewing transaction history — Keep track of your spending and confirm incoming payments in real-time.
Can I Send Money via Paytm Without Doing KYC?
Yes, you can send money via Paytm without completing KYC if you’re using UPI. When you set up Paytm and link your bank account, a one-time KYC verification is completed during onboarding. This allows you to make UPI payments anytime without repeating the process for each transaction. You can send money instantly, scan QR codes, and pay to any UPI ID or mobile number with no extra steps.
Transaction Limit for UPI Transactions
The current transaction limit for regular UPI transactions remains at Rs 1 lakh per transaction per day. However, specific categories such as Capital Markets, Collections, Insurance, and Foreign Inward Remittances have an increased transaction limit of Rs 2 lakh per transaction. For transactions related to Initial Public Offering and Retail Direct Scheme, the limit is further increased to Rs 5 lakh per transaction.
How to Set up UPI on Paytm?
You can set up your UPI account on Paytm by following these simple steps:
- Step 1: Download and install the Paytm app on your smartphone.
- 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: Select ‘UPI & Payment Settings’ from the menu options.
- Step 5: Choose ‘Add bank account,’ select your bank, and enter your account details. Don’t forget to create 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!
Once your UPI account is set up, you can start making payments by selecting the recipient’s contact from your phone book or entering their contact number. Paytm allows direct bank-to-bank transfers in a few simple steps through UPI.
Note: Since a basic verification happens during onboarding, you don’t need to repeat the process every time you make a payment.
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