Paytm Shifts Nodal Account To Axis Bank, Says Soundbox To Work Beyond March 15

One97 Communications Ltd.-operated Paytm has shifted its nodal account to Axis Bank Ltd.

One97 Communications announced that by opening an escrow account, Paytm has shifted its nodal account, an exchange filing said on Friday.

With this, the Paytm QR, Soundbox and Card machines will continue to work even beyond March 15, 2024.

"Paytm QR, Soundbox, Card machine will continue to work as always even beyond March 15, confirms RBI... The company has shifted its nodal account to Axis Bank (by opening an Escrow Account) to continue seamless merchant settlements as before," the company said.

The Reserve Bank of India, on Friday, also extended the deadline for Paytm Payments Bank to March 15, from the previous Feb. 29, for at least some of the restrictions placed on Jan. 31.

"The Nodal Accounts of One97 Communications Ltd. and Paytm Payments Services Ltd. maintained by Paytm Payments Bank Ltd. are to be terminated at the earliest, in any case not later than Feb. 29, 2024," the regulator had said on Jan. 31. The deadline for the nodal account termination was not changed on Friday.

A change in the nodal account will allow merchants to continue accepting digital payments through the Paytm QR code or card machine. This will ensure that fears around merchant payments being suspended are addressed.

Paytm has over 30 crore users, with around 11 crore monthly transacting users. It also has a network of around 1 crore merchants actively accepting payments.