Big News from Paytm! Paytm moves nodal Account to Axis Bank
Paytm parent company One97 Communications has shifted its nodal account to Axis Bank from Paytm Payments Bank to continue operating Paytm QR, Soundbox, and card machines after the RBI’s March 15 deadline.
– they’ve switched their main account from Paytm Payments Bank to Axis Bank. Wondering what this means for you? Let’s break it down.
Basically, Paytm had to make this change because of a deadline set by the Reserve Bank of India. The RBI said that by March 15, Paytm Payments Bank needed to wrap up most of its services, like deposit and credit transactions. But don’t worry!
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By moving their main account to Axis Bank (by opening an escrow account), Paytm ensures that all the important stuff, like QR payments and card machines, keeps running smoothly. This change gives Paytm and its users a bit more time to make the switch without any disruptions.
So, why the switch?
Well, Paytm wants to make sure everything keeps working like before. They’ve been using Axis Bank for their subsidiary, Paytm Payment Services Ltd, from the start. Now, they’re extending that partnership to keep things seamless for everyone.
“This arrangement is expected to seamlessly replace the nodal account that OCL was using with Paytm Payments Bank. Paytm Payment Services Ltd (PPSL), OCL’s wholly owned subsidiary has already been using the Axis Bank services, since its inception,” Paytm quoted in a filing.
And what about you?
If you’re using Paytm’s QR codes, Soundbox, or POS terminals, no worries – they’ll still work after March 15, as long as they’re connected to another bank besides Paytm Payments Bank Ltd (PPBL).
In a nutshell, Paytm’s move to Axis Bank is all about keeping things running smoothly for you. It’s their way of making sure you can keep using their services hassle-free, even as regulations change.
