Paytm also announced that it has transitioned its nodal account to Axis Bank by opening an Escrow Account.
New Delhi: In a step to assure its customers across the nation, leading payments and financial services company Paytm said today that its mobile app, including the widely-used Made in India QR code, Soundbox, and Card Machine, will continue to be operational without interruption even after March 15, as per a report by news agency IANS.
The action from the Fintech company comes after a list of Frequently Asked Questions (FAQ) was released by the Reserve Bank of India (RBI) on Friday, which confirmed that its merchant payment devices will remain unaffected and work normally.
The company also announced that it has transitioned its nodal account to Axis Bank by opening an Escrow Account to ensure uninterrupted merchant settlements. This arrangement is expected to seamlessly replace the nodal account previously used with the Paytm Payments Bank.
Following the FAQs, the company ensures continuing payment services for its millions of users and focuses on business growth with strict compliance with the regulatory guidelines.
Paytm Assures Its Users
“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, and Card Machine will continue to work as always,” said a Paytm spokesperson in a stock exchange filing.
“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,” the spokesperson added.
Paytm’s Founder and CEO, Vijay Shekhar Sharma, took to X to reassure its vast user base.
“Paytm QR, Soundbox, and EDC (Card Machine) will operate as usual, even after March 15,” he said. He also urged the users not to be swayed by rumours and to continue supporting Digital India.
RBI Asks Paytm Payments Bank Customers To Shift To Other Banks
The RBI on Friday advised customers as well as merchants of Paytm Payments Bank Ltd. (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions.
The earlier deadline was February 29, 2024, which the RBI has extended by 15 days keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements in the greater public interest.
The RBI also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, will be permitted without any restrictions, up to their available balance even beyond March 15.
The central bank has also issued a list of 30 Frequently Asked Questions (FAQs), for the convenience of customers of PPBL and the general public at large.
“After March 15, 2024, you (PPBL customers) will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-ins from partner banks or refunds are allowed to be credited,” the FAQs said.
It further said: “It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.”.
The existing deposits of PPBL customers maintained with partner banks can be brought back (sweep-in) to the accounts with PPBL, subject to the ceiling on balance (Rs 2 lakh per individual customer at the end of the day).
Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through PPBL will be allowed after March 15, 2024.
Salaries and pensions too will not be credited to PPBL accounts after March 15. Those customers paying EMIs or OTT subscriptions through PPBL also need to make alternative arrangements.
According to the FAQs, those having a wallet with PPBL can continue to use money from the wallet after March 15, 2024, up to the balance available in the wallet.
On FASTags, the RBI’s FAQs say one can continue to use them to pay a toll up to the available balance.
“However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024,” it said, and it advised the customers to procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.
(With inputs from agencies)