RBI has granted Paytm Payments Bank an additional 15 days, so users can continue to utilize their wallets, accounts, Fastag, and other Paytm banking services till March 15. Following this, Payments Bank would be subject to limitations. The parent company of Paytm has announced that it has moved its nodal (main) account to Axis Bank in the interim.
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Similar to a master account, Paytm’s Nodal Account settles all transactions for both businesses and customers. This means that even after March 15th, users with Paytm Payments Bank accounts can simply complete their transactions. In addition, services like the card machine, soundbox, and QR code will still be available.
Paytm Manages It’s Nodal Account
Payments Bank, a subsidiary of the company, manages the nodal account. Questions are raised about this as well after the RBI’s strictness. According to the sources, it might be challenging to run the UPI service if this account isn’t moved to another bank. However, because of the change in the nodal account at Axis Bank, the issue has now been resolved.
Paytm’s move will enable the Card Machine, Soundbox, and QR codes to continue functioning even after March 15. To maintain smooth transactions for customers, Paytm said in a statement that it has moved its primary account to Axis Bank by creating an escrow account.
RBI Ordered To Stop The Services From March 15
RBI had previously stated that Paytm services including the QR Code, Soundbox, and POS Terminal will remain available if Paytm links with other banks rather than PPBL. However, no more credit transactions, deposits, or top-ups will be accepted in customer accounts, prepaid cards, wallets, Fastag, National Common Mobility Card, etc. after March 15, 2024.
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