In a recent development, the Reserve Bank of India (RBI) has confirmed that Paytm’s essential services, including Paytm QR, Soundbox, and Card Machine, will continue to operate seamlessly for all merchant partners beyond March 15, 2024. This assurance comes as a big relief to Paytm from RBI to its users and businesses that rely on these payment solutions.
RBI’s Confirmation- Relief to Paytm from RBI
The RBI, through its released Frequently Asked Questions (FAQs), addressed concerns from merchants who use Paytm QR codes, Soundbox, or POS terminals linked to bank accounts other than Paytm Payments Bank. Point number 21 in the FAQs explicitly states that users with such setups can continue using them even after the specified date.
Q: I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?
A: Yes. If your receipt and transfer of funds are linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.
This confirmation provides clarity and ensures that businesses can continue their usual transactions without disruption.
Nodal Account Shift to Axis Bank
To further facilitate uninterrupted merchant settlements, Paytm has shifted its nodal account to Axis Bank. This strategic move involves opening an Escrow Account, replacing the previous arrangement with Paytm Payments Bank. The transition is aimed at maintaining a seamless experience for Paytm’s merchant partners.
The spokesperson from Paytm emphasised the company’s commitment to providing seamless services while adhering to compliance and regulatory guidelines. The shift to Axis Bank for the nodal account is expected to enhance efficiency and ensure continuity in merchant settlements.
Paytm Spokesperson: “We are committed to providing seamless service to our merchant partners, with a 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.”
Paytm’s Contribution to Financial Inclusion
As a leading mobile payments and financial services distribution company in India, Paytm has been a pioneer in the mobile QR payments revolution. The company’s mission is to serve half a billion Indians and bring them into the mainstream economy through technology.
About Paytm:
Paytm is India’s leading mobile payments and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce.
With a focus on contributing significantly to the country’s financial inclusion journey, Paytm remains dedicated to empowering Indians through its innovative solutions.
Conclusion for Relief to Paytm from RBI
In conclusion, the RBI’s confirmation and Paytm’s strategic nodal account shift reflect the company’s commitment to ensuring a smooth transition and uninterrupted services for its users and merchant partners which is a big relief to Paytm from RBI. As Paytm continues to evolve and contribute to India’s financial landscape, users can trust in the reliability of Paytm QR, Soundbox, and Card Machine for their payment needs.