2024-02-19 By Surbhi Chauhan News

'Paytm Transfers Nodal Account to Axis Bank from Paytm Payments Bank'


One97 Communications, the fintech firm behind the renowned Paytm brand, has recently made a significant transition, relocating its nodal account from Paytm Payments Bank to Axis Bank. This strategic move comes in response to directives set by the Reserve Bank of India (RBI), stipulating a deadline of March 15 for Paytm Payments Bank Ltd (PPBL) customers and merchants to migrate their accounts to alternative banking institutions.


According to regulatory filings, this transition will ensure the uninterrupted functionality of essential Paytm services such as QR payments, Soundbox, and card machines beyond the RBI's deadline. The decision to shift the nodal account to Axis Bank, facilitated by the establishment of an escrow account, is aimed at maintaining seamless merchant settlements.


In a statement, Paytm emphasized that the new arrangement with Axis Bank is poised to seamlessly replace the previous nodal account setup with Paytm Payments Bank. Paytm Payment Services Ltd (PPSL), a wholly-owned subsidiary of One97 Communications, has been utilizing Axis Bank's services since its inception.


The nodal account serves as a central account through which all customer and merchant transactions are settled, highlighting its crucial role within Paytm's operational framework.


Addressing concerns regarding the continuity of services post-deadline, the RBI has clarified that Paytm QR codes, Soundbox devices, and POS terminals will remain functional if linked to accounts with alternative banks instead of PPBL.


A spokesperson from Paytm reiterated the company's commitment to delivering uninterrupted services to its merchant partners while prioritizing compliance with regulatory guidelines. They assured users that essential Paytm functionalities, including the app itself and innovative devices like Paytm QR, Soundbox, and Card Machine, will continue to operate seamlessly.

In light of the RBI's directives, Paytm has advised PPBL customers to obtain fresh QR codes linked to accounts with other banking providers or e-wallets to facilitate payments post-March 15. Additionally, the management has stated their intention to collaborate with other banks to update the virtual payment addresses associated with PPBL, ensuring minimal disruption to merchant transactions.


Through these measures, Paytm aims to uphold its commitment to empowering Indian users and contributing significantly to the nation's journey towards financial inclusion.