Paytm QR, Soundbox, Card machine will continue to work as always even beyond March 15, confirms RBI

We want to confirm that Paytm QR, Soundbox, and Card Machine will continue to operate seamlessly for all our merchant partners. This was confirmed today by the Reserve Bank of India (RBI) through its released note of Frequently Asked Questions (FAQs).

From the RBI FAQs, point no 21:

Q: I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this setup even after March 15, 2024?

Yes. If your receipt and transfer of funds are linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.

We would also like to inform that we have shifted our nodal account to Axis Bank (by opening an Escrow Account) to continue seamless merchant settlements as before. This arrangement is expected to seamlessly replace the nodal account that our parent company 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.

“We are committed to providing seamless service to our merchant partners, with focus on compliance and regulatory guidelines. With this guidance, we assure our users that the Paytm app, and our pioneering devices like Paytm QR, Soundbox, Card Machine will continue to work as always. The shift of the nodal account to Axis Bank (by opening an Escrow Account) will ensure seamless merchant settlements as before. We strive to continue to empower Indians, contributing significantly to the country’s financial inclusion journey.”— Paytm Spokesperson said