Paytm shifts nodal account to Axis Bank, RBI extends unit wind-down date to March 15
of India Paytm Payment Bank It has been given more time by the central bank to wind down its operations, while its parent company has signed on a new banking partner to continue some of its popular products and try to avoid its current crisis. can be done
gave Reserve Bank of India (RBI) Ordered in January Paytm Payments Bank, a partner of One 97 Communications (OCL) – also known as Paytm, to stop accepting any fresh deposits into their accounts or wallets from February 29. That deadline was extended to March 15, the RBI said on Friday.
“The company (Paytm) has transferred its nodal account (by opening an escrow account) to Axis Bank to continue smooth merchant settlements as before,” Paytm said in a release.
The company added that Paytm QR codes, sound boxes and card machines will continue to work as before after March 15.
The action against Paytm Payments Bank was initiated for what RBI officials termed as persistent non-compliance with rules and regulations. Earlier this week, India’s financial crime-fighting agency began reviewing details of overseas transactions on the platform.
The RBI said the deadline extension was meant to give consumers, including traders, “a little more time” to make alternative arrangements.
“No further deposit or credit transactions or top-ups will be permitted in any customer accounts, prepaid devices, wallets, Fast tagsNational Common Mobility Cards etc. after 15 March 2024.
Separately, RBI also released a detailed set of customer specifications.
Users can withdraw or use funds from their Paytm Payments bank accounts and wallets till the funds are exhausted but cannot add any new funds after March 15, the regulator said.
Consumers who receive their salaries or make other transfers, including government subsidies, into these accounts will have to make alternative arrangements by mid-March.
Merchants using Paytm’s QR codes to accept payments may continue to do so if the QR codes are linked to accounts other than those held by Paytm Payments Bank.
The bank accounts for about a fifth of India’s toll collection through a product called FASTag. RBI said that these fast tags cannot be recharged or topped up after March 15.
Paytm Payments Bank non-executive chairman Vijay Shekhar Sharma has met RBI officials and the finance minister and tried to lobby against the crackdown, but RBI Governor Shaktikanta Das said on Monday that There will be no review of its decision.
© Thomson Reuters 2024
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