Paytm transfers nodal account to Paytm Payments Bank to Axis Bank
Mumbai: One97 Communications, the parent company of Paytm, has transferred its nodal account from Paytm Payments Bank to Axis Bank.
This change ensures the uninterrupted functioning of Paytm QR, Soundbox, and card machines beyond the March 15 deadline set by the Reserve Bank of India (RBI).
The RBI has instructed customers and merchants associated with Paytm Payments Bank Ltd (PPBL) to migrate their accounts to alternative banks by March 15.
This extension grants an additional 15 days for the struggling entity to wind down the majority of its operations, including deposit and credit transactions.
"The company has also shifted its nodal account to Axis Bank (by opening an escrow account) to continue seamless merchant settlements as before.
"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," Paytm said in a filing.
The nodal account of Paytm serves as a central account where all customer and merchant transactions are reconciled.
According to the Reserve Bank of India (RBI) FAQs, it has been clarified that Paytm QR codes, Paytm Soundbox, or Paytm POS terminals will remain operational after March 15 if they are linked to banks other than PPBL.
"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," a Paytm spokesperson said, according to report in the media.
The RBI has advised that PPBL customers obtain a new QR code associated with an account from a different bank or digital wallet in order to continue receiving payments after March 15.
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