Paytm Payments Bank Nodal Accounts to Shift to Axis Bank Following RBI Ban
New Delhi, 17th February 2024: In response to the recent ban imposed by the Reserve Bank of India (RBI), Paytm founder Vijay Shekhar Sharma has announced the transfer of Paytm Payments Bank’s nodal accounts to Axis Bank. This strategic move aims to ensure the uninterrupted settlement of merchants, a crucial aspect of Paytm’s operations.
Vijay Shekhar Sharma, speaking on behalf of his company One97 Communication Limited (OCL), stated that an escrow account would be opened in Axis Bank to facilitate the smooth transition of all nodal accounts. This decision comes in the wake of RBI’s directive to ban various facilities of Paytm Payments Bank.
One 97 Communications Limited, in an official statement, emphasized the necessity of relocating all nodal accounts to Axis Bank to maintain seamless merchant settlements. The company’s subsidiary, Paytm Payment Services Limited, has a longstanding association with Axis Bank, making the transition a viable and efficient option.
The company clarified that Paytm QR, Soundbox, and card machines will remain unaffected by the RBI’s stringent measures. Despite the challenges faced by Paytm users, the RBI has extended the deadline for the ban from February 29 to March 15, taking into consideration the complexities involved in the transition.
In its order issued on January 31, the RBI specified the prohibition of deposit transactions on Paytm Payments Bank accounts, along with restrictions on prepaid instruments, wallets, Fastag, and the National Common Mobility Card. However, withdrawals will continue to be permitted as long as the account balance remains.
The move to shift nodal accounts to Axis Bank reflects Paytm’s commitment to addressing regulatory concerns while ensuring the continuity of essential services. As the deadline approaches, users can expect Paytm QR, Soundbox, and card machines to function seamlessly without any disruptions.
