RBI FAQ suggests merchants with Paytm Bank to get new QR code linked with other bank account

After March 15, 2024, one will not be able to deposit money into their account with Paytm Payments Bank

Merchant customers with Paytm Payments Bank (PPB) are suggested to get a new QR code linked with other banks' accounts in order to use Paytm's soundbox and POS terminal services after March 15, the Reserve Bank of India (RBI) said in its list of FAQs on February 16.

"After March 15, 2024, you will not be able to receive any credit into your bank account or wallet with PPB other than refunds, cashbacks, sweep-in from partner banks or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments," RBI said.

The central bank also said merchants can change their bank account details through your service provider.

Vijay Shekhar Sharma, Founder and Chief Executive Officer (CEO), on X said that Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.

Also read: Paytm Payments Bank says withdrawals smooth, meeting all regulatory requirements

"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," Sharma said.

RBI action

On January 31, the RBI imposed business restrictions on the bank citing repeated violations of norms and non-compliance with multiple rules.

The banking regulator barred PPBL from accepting fresh deposits and doing credit transactions after February 29.

A Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said.

No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, other than any interest, cashbacks, or refunds which may be credited anytime, the RBI said.

It, however, said the withdrawal or utilisation of balance by the customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. will be allowed without any restrictions till the available balance is exhausted.

It also directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 after which no transaction shall be permitted.