Axis Bank Steps In For Seamless Settlement For Paytm Merchants
Paytm, though its X handle, has announced that they have shifted their nodal account to Axis Bank, by opening an Escrow account. This, Paytm said was to “continue seamless merchant settlements as before.” In a trading disclosure by its parent company, One 97 Communications Limited, Paytm, along with the news of bringing onboard it’s new banking partner, Axis Bank, also highlighted on the Reserve Bank of India’s (RBI) confirmation that “Paytm QR, Soundbox, Card machine will continue to work as always even beyond March 15.”
The company was given an extended deadline of March 15, 2024, so as to not inconvenience the account holders, giving them more time to park their funds elsewhere and also for the company to conclude its operations. The One 97 Communication’s Paytm Payments Bank was also told not to onboard any new customer or deposits. The restriction has been placed by the RBI on the Paytm Payments Bank for non-compliance of regulations.
The disclosure by Paytm specifically pointed out no. 21 from the RBI press release to frequently asked questions on Paytm. The question was, if a merchant could continue to use a Paytm QR code, Paytm soundbox or Paytm POS terminal, which is linked to another bank account (not with Paytm Payments Bank), even after the end date of March 15, 2024? The RBI, as an answer says that, if the “transfer of funds is linked to any bank account other than Paytm Payments,” then the merchant could “continue to use this arrangement even after March 15, 2024.”
Now, with the new developments, it would come as a relief to merchants, who can now go ahead using the Paytm QR code, Paytm soundbox or Paytm POS terminal, if their bank accounts are not linked with the Paytm Payments Bank. The onboarding of Axis bank to replace nodal account, is expected to go smoothly. The disclosure also said that, the Paytm Payment Services Limited (PPSL), which is a fully owned subsidiary of One 97 Communications Limited, has been using the services of Axis Bank from the start.
The Paytm Spokesperson said that, “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.”
