Earlier this trick was working fine and after some days Paytm stopped this trick and asking to update the app.Now we have come up with new trick which will not ask you to update the app.Use the trick ASAP before paytm stop this also.
1. Uninstall the paytm app
2. Download and install the old version of paytm app from below link,
https://www.mediafire.com/?y1ivr24k...d2
3. Login to your Paytm account without OTP.
4. Now switch off the Internet.
5. Open the app and go to Wallet option.
6. After that, switch on the Internet and smoothly use the paytm app without OTP required for Login.
Paytm Two Step Verification Step:
Earlier some paytm users are the victims of online fraud.You can check our article Beware of Online Fraud [Must Read] to know how you can secure your paytm account from unwanted users.
Paytm enabled two step verification to deal with users with having multiple paytm accounts and who tried to login to other users paytm account illegally.
OTP Mobile Verification is required to login into your Paytm account.
OTP will be sent to registered mobile number
No OTP required when you tried to login to paytm via paytm mobile app
OTP only required when accessing via paytm desktop website and mobile website
https://www.desidime.com/discussions/paytm-otp-bypass-trick-transfer-login-without-otp?page=1#post_3063809
Please do not try to download app from unknown sources 
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