Paytm to partner with Axis Bank for settlement of merchant payments

Paytm said on February 16 that it has partnered with Axis Bank for the settlement of merchant payments. The company issued a release stating that One97 Communications has shifted its nodal account to Axis Bank via an escrow account that it has opened with it.

The shift of nodal account to Axis Bank will ensure seamless merchant settlements as before, the release from One97 Communications added.

According to One97 Communications, the parent company of Paytm, Paytm QR, Soundbox and card machine will continue to operate seamlessly for all their merchant partners. Additionally, the Reserve Bank of India (RBI) has confirmed the continued seamless functionality of Paytm QR, Soundbox, and card machines beyond March 15.

According to Paytm, merchants with fund transactions connected to any bank account other than Paytm Payments Bank need not worry about disruptions.

Are you a Paytm Payments Bank account holder? Here’s what you can do

Paytm has also announced that merchants utilising Paytm QR codes, Paytm soundbox, or Paytm POS terminals linked to non-Paytm Payments Bank accounts can continue their operations seamlessly beyond March 15, 2024.

A Paytm spokesperson said stated that they are dedicated to delivering uninterrupted services to their merchant partners while adhering to compliance and regulatory norms.

“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. 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's statement read.

Here are the FAQs released by the RBI on February 16

Paytm Payment Services has been utilising Axis Bank services since its inception, it said, and added this existing partnership is anticipated to contribute to a streamlined transition for merchants accustomed to the Paytm ecosystem.

RBI addresses concerns, releases FAQs on Paytm Payments Bank for customer clarity

The Reserve Bank of India (RBI) on February 16 issued frequently asked questions (FAQs) for bank account holders of Paytm Payments Bank. The RBI issued an FAQ on action taken against Paytm Payments Bank Ltd (PPBL), outlining the different aspects of the directions and assuring that customers of the bank wouldn’t be impacted because of the central bank step.

Also, the central bank has clarified that existing Paytm bank customers with available balances don’t need to worry. The RBI emphasised that withdrawals up to the available balance should be facilitated by PPBL from all accounts and wallets, excluding the ones that are frozen or lien marked by law enforcement or judicial authorities.

The RBI extended the deadline for Paytm Payments Bank Ltd (PPBL) to stop accepting fresh deposits and do credit transactions to March 15 from February 29.

On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions. The regulator found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks.