Paytm Payments Bank has signed an agreement with the private sector Axis Bank to settle merchant payments. The company said it opened an escrow account and shifted its nodal account to Axis Bank to make payments to merchant partners seamlessly.
Paytm has given this information in the regulatory filing filed with the stock exchange. The company said that parent company One97 Communications had shifted its nodal account to Axis Bank. One97 Communications said that Paytm QR, Soundbox, and Card Machine will continue to operate seamlessly for all merchant partners. RBI has also said that Paytm QR, Soundbox and card machines will continue to work even after March 15, 2024.
Paytm spokesperson said that while keeping the regulatory guidelines and compliance in mind, we are fully dedicated to seamlessly providing services to our merchant partners. We also want to assure our users that the Paytm app and our devices, Paytm QR, Soundbox and Card Machine, will continue to work.
Before this, the Reserve Bank of India significantly relieved Paytm Payments Bank. The restrictions imposed by RBI on Paytm from February 29, 2024, have been extended till March 15, 2024. Keeping in mind the interests of customers and shopkeepers, the Reserve Bank of India has amended its old order to give Paytm Payment Bank more time to make alternative arrangements. To clear the doubts arising in the minds of Paytm customers, RBI has also issued a FAQ regarding Paytm Payment Bank.
Before RBI announced relief to Paytm in Friday’s trading session, Paytm’s stock closed at Rs 341.30 with an upper circuit filter of 5 per cent.
