Reserve Bank of India ordered Paytm to stop accepting fresh deposits into its payment banks with a deadline of 29th February 2024. However, RBI has extended the deadline from 29th February to 15 March on Friday, while One 97 Communications has signed off with a new banking partner to offer seamless services as before. RBI said they have extended the deadline so merchants can get enough time to shift to other alternatives.
Paytm Joins Forces with New Banking Partner
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The company has shifted its nodal account with Axis Bank by opening up an escrow account to continue offering uninterrupted transaction services to its users. The company said that the Paytm soundbox, QR codes, and card machines will continue to work even after 15 March 2024.
RBI took action against the payment because of its persistent non-compliance with regulations. Besides this, India’s financial crime-fighting agency also looked into the details of the company’s overseas transactions earlier this week.
RBI said no further debit and credit transactions will be allowed in the customer accounts, wallets, prepaid instruments, FASTags, or National Common Mobility Cards. Apart from this, RBI has said that customers will not be able to add further funds to their accounts, but they can still use the balance available in their account until it’s exhausted, even after 15 March.
People receiving their salaries or pension funds need to shift to another alternative within mid-March, and the merchants using Paytm QR codes, if they have another bank linked up with their QR codes, can receive funds without any restrictions.
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