Positive Paytm News: QR, Soundbox, and Card MachPositive Paytm News: QR, Soundbox, and Card Machine Will Continue To Operate After March 15; Here’s Whyine Will Continue To Operate After March 15; Here’s Why

Delhi, New: Leading payments and financial services provider Paytm announced today that its mobile app, which includes the popular Made in India QR code, Soundbox, and Card Machine, will remain up and running even after March 15 in an effort to reassure its customers nationwide, according to a report by news agency IANS.

The Reserve Bank of India (RBI) issued a list of Frequently Asked Questions (FAQ) on Friday, reaffirming that its merchant payment devices would continue to function regularly and be impacted. This is when the Fintech business took action.

In order to guarantee continuous merchant payments, the business also disclosed that it has moved its nodal account to Axis Bank and opened an escrow account. It is anticipated that this arrangement would smoothly replace the nodal account that was previously connected to the Paytm Payments Bank.

By adhering to the FAQs, the firm guarantees the uninterrupted payment services for its millions of consumers while concentrating on business expansion while maintaining stringent adherence to regulatory rules.

Paytm Guarantees Users
“We are dedicated to offering our merchant partners frictionless service, with an emphasis on regulatory compliance and requirements. According to a Paytm representative in a stock market filing, “We guarantee our users that the Paytm app and our innovative devices like Paytm QR, Soundbox, and Card Machine will continue to work as always.”

The transfer of the nodal account to Axis Bank (via the creation of an escrow account) would guarantee the same level of smooth merchant payments. The spokeswoman said, “We work hard to empower Indians and have a major impact on the nation’s financial inclusion path.

Vijay Shekhar Sharma, the founder and CEO of Paytm, used X to reassure the company’s sizable customer base.

Even after March 15, “Paytm QR, Soundbox, and EDC (Card Machine) will operate as usual,” he said. Additionally, he exhorted the people to stick with Digital India and not let misinformation get in the way.

RBI Requests Bank Customers Of Paytm Payments To Switch To Different Banks
The Reserve Bank of India (RBI) on Friday directed Paytm Payments Bank Ltd. (PPBL) merchants and consumers to move their accounts to other banks by March 15. This gives the struggling company an additional 15 days to shut down the majority of its activities, which includes credit and deposit transactions.

The deadline was originally set until February 29, 2024, but the RBI has extended it by 15 days in consideration of PPBL customers’ (including merchants’) needs for a little more time to make other arrangements that would serve the public interest.

Additionally, the RBI stated that PPBL customers will be able to withdraw or use any available balance from their accounts, including savings bank accounts, current accounts, prepaid cards, FASTags, and National Common Mobility Cards, without any limitations, even after March 15.

A list of thirty Frequently Asked Questions (FAQs) has also been released by the central bank for the benefit of PPBL clients and the wider public.

“You (PPBL users) will not be allowed to make deposits into your Paytm Payments Bank account after March 15, 2024. The FAQs said that only interest, cashbacks, sweep-ins from partner banks, and refunds are eligible for credits or deposits.

In order to minimise disruption, it is advised that you prepare other banking arrangements by March 15, 2024.

Customers of PPBL who have deposits with partner banks may return their deposits to PPBL accounts via a process known as sweep-in, provided that the sum is less than the daily cap of Rs 2 lakh per user.

Such sweep-ins will still be permitted in order to make the amounts accessible for the consumer to utilise or remove. But after March 15, 2024, no new deposits made via PPBL with partner banks would be accepted.

After March 15, neither salaries nor pensions will be credited to PPBL accounts. Customers who use PPBL to pay for their OTT subscriptions or EMIs must also make other plans.
As per the FAQs, anyone who own a PPBL wallet may use the funds inside it until March 15, 2024, provided that the balance remains intact.

The RBI’s FAQs state that one may keep using FASTags to pay a toll up to the available balance.

It encouraged the consumers to get a new FASTag issued by another bank by March 15, 2024, to prevent any difficulty. “However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after that date,” the statement said.