Paytm Assures Continuity of QR Code and Soundbox Amid Regulatory Scrutiny
Amidst regulatory turbulence, Paytm founder and CEO Vijay Shekhar Sharma has reassured users that the company’s QR code and Soundbox functionalities will stay active beyond March 15.
Addressing the swirling rumours, Sharma emphasised that Paytm’s QR code, Soundbox, and EDC (card machine) will remain operational, citing clarification from the Reserve Bank of India (RBI) FAQ.
In a statement posted on X (formerly known as Twitter), Sharma urged users not to believe misinformation, urging them to continue supporting India”s digital initiatives. Paytm echoed this sentiment in an advertisement aimed at dispelling uncertainties, asserting that their devices and QR code infrastructure are here to stay, reaffirming their commitment to seamless digital transactions.
Moreover, One 97 Communications, the parent company of Paytm, experienced a ten percent surge within two days on Monday morning.
The clarification in question, point 21 of the RBI’s FAQ, explicitly stated that transactions linked to any bank account other than Paytm Payments Bank will remain unaffected post-March 15 this year. This clarification comes amidst a backdrop of heightened regulatory scrutiny following significant business restrictions imposed on Paytm Payments Bank by the RBI on January 31.
Yep ! Today, tomorrow, always.#PaytmKaro pic.twitter.com/4iM9Jxm94T
— Vijay Shekhar Sharma (@vijayshekhar) February 19, 2024
The central bank”s action stemmed from persistent non-compliances and supervisory concerns identified in a validation report by external auditors, prompting stringent measures. As per the RBI”s directive, no further deposits, credit transactions, or top-ups will be permitted in Paytm Payments Bank accounts after February 29, except for interest, cashbacks, or refunds.
The RBI”s intervention has reverberated throughout the fintech industry, sparking apprehensions regarding the continuity of Paytm”s services, including its QR code and card machine, as well as the Soundbox. However, Paytm”s active aim to allay such concerns, ensuring continuity and stability for its users amidst regulatory challenges.
