Paytm: RBI has granted Paytm Payments Bank an additional 15 days, so users can continue to utilise their wallets, accounts, Fastag, and other Paytm banking services through March 15. Following this, Paytm Payments Bank would be subject to limitations. The parent business of Paytm has announced that it has moved its nodal (main) account to Axis Bank in the interim.
User-Centric Approach
The Nodal Account offered by Paytm functions similarly to a master account in that it settles all merchant and client transactions. This implies 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.
Navigating Nodal Challenges
Paytm Payments Bank Limited, a subsidiary of Paytm, manages the nodal account. Questions began to be 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 is now obvious.
Paytm’s action will enable the Paytm Card Machine, Soundbox, and QR codes to continue functioning even after March 15. In order to maintain smooth transactions for customers, Paytm announced in a statement that it has moved its primary account to Axis Bank by creating an escrow account.
The Future of Paytm Services Beyond March 15, 2024
RBI had stated that Paytm’s services, such as Paytm QR Code, Paytm Soundbox, and Paytm 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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