Paytm, India’s leading digital payment platform, announced its strategic partnership with Axis Bank for the settlement of merchant payments on February 16. The collaboration involves the shift of Paytm’s nodal account to Axis Bank through an escrow account, ensuring seamless settlements for merchants, according to a release from One97 Communications, the parent company of Paytm.
The partnership emphasizes that Paytm QR codes, Soundbox, and card machines will continue to operate seamlessly for all merchant partners, even beyond March 15, as confirmed by the Reserve Bank of India (RBI). Merchants with fund transactions linked to any bank account other than Paytm Payments Bank can operate without disruptions.
A Paytm spokesperson stated, “We are committed to providing seamless service to our merchant partners, with a focus on compliance and regulatory guidelines. The Paytm app, along with our pioneering devices like Paytm QR, Soundbox, and card machines, will continue to work as always. The shift of the nodal account to Axis Bank (via an Escrow Account) will ensure seamless merchant settlements as before.”
FAQs Released by RBI on February 16: The Reserve Bank of India issued frequently asked questions (FAQs) on February 16 to address concerns of Paytm Payments Bank account holders. The FAQs clarified the action taken against Paytm Payments Bank Ltd (PPBL) and assured customers that the central bank’s steps would not impact them adversely.
Key Points from RBI FAQs:
- Existing Paytm bank customers with available balances do not need to worry.
- Withdrawals up to the available balance will be facilitated by PPBL from all accounts and wallets, excluding those frozen or lien-marked by law enforcement or judicial authorities.
RBI Deadline Extension: The RBI extended the deadline for PPBL to stop accepting fresh deposits and conducting credit transactions to March 15, moving it from the initially set date of February 29. The regulatory decision, imposed on January 31, included significant business restrictions on PPBL due to identified irregularities in KYC processes, posing risks to customers, depositors, and wallet holders.
