One97 Communications, on Friday, announced that 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. We strive to continue to empower Indians, contributing significantly to the country’s financial inclusion journey,” Paytm spokesperson said in a statement.
A modification in the nodal account setup will enable merchants to sustain their acceptance of digital payments through the Paytm QR code or card machine. This adjustment aims to alleviate concerns regarding potential suspensions of merchant payments.
With a user base exceeding 300 million, Paytm boasts approximately 110 million monthly transacting users. Additionally, it maintains a network of approximately 10 million actively engaged merchants accepting payments.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
