Paytm ensures operational fluidity beyond March 2024 with strategic banking transition
In a significant announcement for the digital payments landscape in India, the Reserve Bank of India (RBI) has confirmed that Paytm’s QR, Soundbox, and Card Machine services will continue to operate seamlessly beyond March 15, 2024. This clarification came as part of an RBI-released note addressing Frequently Asked Questions (FAQs) related to payment services.
One97 Communications Ltd (OCL), the parent company of Paytm, has transitioned its nodal account to Axis Bank by opening an Escrow Account. This move is aimed at ensuring uninterrupted merchant settlements, maintaining the operational fluidity for which Paytm is known. The shift to Axis Bank is part of Paytm’s strategic efforts to adhere to compliance and regulatory guidelines while continuing to provide pioneering payment solutions to its merchant partners.
From the RBI’s FAQs, a critical point was highlighted for merchants using Paytm’s payment processing services. Merchants accepting payments through Paytm’s QR code, soundbox, or POS terminal linked to a bank account other than Paytm Payments Bank are assured of the continuity of these services even after the specified date in March 2024.
RBI Confirms Continuity of Paytm Payment Solutions Beyond March 15
A spokesperson from Paytm expressed the company’s dedication to offering seamless service to its merchant partners, emphasizing the importance of compliance and regulatory adherence. The integration with Axis Bank for merchant settlements is expected to further bolster Paytm’s commitment to empowering Indian businesses and contributing to the country’s financial inclusion journey.
This development signifies a positive step forward in the financial technology sector, offering clarity and assurance to the numerous merchants reliant on Paytm’s payment processing tools. By aligning with Axis Bank for nodal account operations, Paytm not only secures its position as a leading payment services provider but also reinforces its commitment to innovation and regulatory compliance. This move is likely to strengthen Paytm’s ecosystem, ensuring that its payment solutions remain a preferred choice for merchants across India.