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Paytm parent One97 Communications Ltd. has transferred its nodal account or an escrow account to Indian private sector bank Axis Bank Ltd.
The development comes after Axis Bank CEO reportedly said the bank is open to working with RBI hit Paytm if the central bank permits it.
"Subject to regulatory approval and the regulator allows us to work with Paytm...We will work with them. They are an important player," he said.
With this, the Paytm QR, Soundbox and Card machines will continue to work even beyond March 15, 2024, the company said in an exchange filing,
"Paytm QR, Soundbox, Card machine will continue to work as always even beyond March 15, confirms RBI... The company has shifted its nodal account to Axis Bank (by opening an Escrow Account) to continue seamless merchant settlements as before," the company said.
The development comes shortly after RBI extended the deadline for restrictions on Paytm Payments Bank from February 29 to March 15.
What did Paytm say?
Paytm Spokesperson said, “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 QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.
— Vijay Shekhar Sharma (@vijayshekhar) February 16, 2024
The latest FAQ issued by RBI on point #21 clarifies it unambiguously.
Do not fall for any rumour or let anyone deter you to championing Digital India ! https://t.co/ts5Vqmr6qh