Paytm to Affiliate with Axis Bank
Paytm to Affiliate with Axis Bank
The Reserve Bank of India (RBI) has issued notices to Paytm Payment Bank not to accept deposits, prepaid instruments, wallets, and FASTags, and the services of the bank will be terminated by March 15, 2024, rather than February 29, 2024.
Amidst this, One97 Communications announced on Friday, February 16, 2024, that it has partnered with Axis Bank to settle the merchant payments.
Paytm currently has a user base of more than 300 billion, with over 10 million users actively engaged in merchants accepting payments.
A Paytm official announced, “We are committed to providing seamless services to our merchant partners, with a focus on compliance and regulatory guidelines. We assure our users that the Paytm app and our pioneering devices, such as the Paytm QR and Soundbox card machines, 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.”
The nodal account of Paytm is like a master account in which all its customer and merchant transactions are settled.
RBI, in its frequently asked questions (FAQs), mentioned that, as Paytm QR, Soundbox card machines will continue to operate seamlessly for all our merchant partners.
Furthermore, the RBI has instructed the customers of Paytm Payment Bank to get a new QR code linked to a new bank account before March 15, 2024.
