One97 Communications said in an exchange filing on Friday that Paytm has moved its nodal account to Axis Bank (by forming an escrow account).
“We want to highlight RBI’s confirmation through its released note of Frequently Asked Questions (FAQs), that Paytm QR, Soundbox, and Card Machine, will continue to operate seamlessly for all our merchant partners.”
The company added, “The Nodal Accounts of One97 Communications Ltd. and Paytm Payments Services Ltd. maintained by Paytm Payments Bank Ltd. are to be terminated at the earliest, in any case not later than Feb. 29, 2024.”
The Reserve Bank of India declared on Friday that the original deadline of February 29 for Paytm Payments Bank would now be extended till March 15. A few limitations that were put in place on January 31 are covered by this extension.
“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,” Paytm spokesperson mentioned in a statement.
Merchants will be able to continue accepting digital payments using the Paytm card machine or QR code with a change to the nodal account setup.
