Paytm shifts nodal account to Axis Bank; Soundbox, Card machine to continue working even after March 15
Paytm has shifted its nodal account to Axis Bank (by opening an Escrow Account), the company said in an exchange filing. On Friday, the Reserve Bank of India announced an extension of the deadline for Paytm Payments Bank until March 15, a shift from the initial date of February 29. This extension applies to certain restrictions imposed on January 31.
“We want to highlight RBI’s confirmation through its released note of Frequently Asked Questions (FAQs), that Paytm QR, Soundbox, and Card Machine, will continue to operate seamlessly for all our merchant partners." The company further said, “The Nodal Accounts of One97 Communications Ltd. and Paytm Payments Services Ltd. maintained by Paytm Payments Bank Ltd.
are to be terminated at the earliest, in any case not later than Feb. 29, 2024." This arrangement is expected to seamlessly replace the nodal account that OCL was using with Paytm Payments Bank. Paytm Payment Services Ltd (PPSL), OCL’s wholly owned subsidiary has already been using the Axis Bank services, since its inception.
“We are committed to providing seamless service to our merchant partners, with focus on compliance and regulatory guidelines. We assure our users that the Paytm app, and our pioneering devices like Paytm QR, Soundbox, Card Machine will continue to work as always. The shift of the nodal account to Axis Bank (by opening an Escrow Account) will ensure seamless merchant settlements as before.
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