RBI Confirms Paytm QR, Soundbox, And Card Machines To Work As Always; Co Shifts Nodal Account To Axis Bank

Paytm, India's leading payments and financial services company, in an exchange filing informed that its Made-in-India devices including QR Code, Soundbox, and Card Machine, will continue to operate as always beyond March 15, 2024. This assurance comes after the FAQ issued by the Reserve Bank of India (RBI) on Friday, regarding Paytm’s associate, Paytm Payments Bank Ltd (PPBL).

Paytm's payment solutions have been a champion for Digital India and instrumental in facilitating smooth and convenient transactions for its users. From street vendors to large retailers, its products and services have empowered businesses of all sizes to embrace mobile payments and enhanced customer experiences.

Vijay Shekhar Sharma, the founder and CEO of the company tweeted, “Paytm QR, Soundbox, and EDC (card machine) will continue to work like always, even after March 15.” He further added that the latest FAQ issued RBI on point #21 clarified the same and urged users to not fall for any rumour.

Point number 21 from RBI’s FAQ read, “ 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?

Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.”

The company has 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 One97 Communications Limited (OCL) that owns the brand Paytm, was using with PPBL. Paytm Payment Services Ltd (PPSL), OCL’s wholly owned subsidiary has already been using the Axis Bank services, since its inception.