Paytm shifts nodal account to Axis Bank to ensure continuity of transactions

Fintech firm One97 Communications -- owner of the brand Paytm -- has shifted its nodal account to Axis Bank from Paytm Payments Bank.

The move will allow continuity of Paytm QR, Soundbox, card machine after the March 15 set by the Reserve Bank of India, as per a regulatory filing.

The RBI has advised customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions.

"The company has also shifted its 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 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 said in a filing.

The nodal account of Paytm is like a master account in which all its customers, merchant transactions are settled.

The RBI in the list of FAQs has clarified that Paytm QR code, Paytm Soundbox or Paytm POS terminal will continue to work after March 15 if it is linked to other banks instead of PPBL.