Paytm partners with Axis Bank to ensure continuity of transactions

Paytm partners with Axis Bank to ensure continuity of transactions

NEW DELHI: One97 Communications, owner of the brand Paytm, disclosed that it has moved its nodal account to Axis Bank from Paytm Payments Bank to maintain seamless merchant settlements. The nodal account is important as it serves as a master account for settling all customer and merchant transactions.

The company, in a regulatory filing, stated that they shifted the nodal account to ensure the continuity of services like Paytm QR, Soundbox, and card machines beyond the Reserve Bank of India’s deadline of March 15.

Earlier, Reserve Bank of India had advised customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15. This move provided PPBL an additional 15 days to close most of its operations, including deposit and credit transactions.

“This arrangement is expected to seamlessly replace the nodal account that OCL was using with Paytm Payments Bank. Paytm Payment Services Ltd (PPSL), OCL’s wholly owned subsidiary has already been using the Axis Bank services, since its inception,” Paytm said in a filing.

RBI, earlier had instructed the termination of the nodal accounts of OCL and PPSL, which were maintained by Paytm Payments Bank, by February 29 this year.

The RBI terminated this because of “persistent non-compliances” and “continued material supervisory concerns” within the bank.

According to the Reserve Bank of India’s FAQs, services like Paytm QR code, Soundbox, or POS terminal will continue to function after March 15 if they are linked to banks other than PPBL.

For more news like this visit TOI. Get all the Latest News, City News, India News, Business News, and Sports News. For Entertainment News, TV News, and Lifestyle Tips visit Etimes