Page 36 - The Indian EYE 030124

BUSINESS EYE MARCH 01, 2024 | The Indian Eye 36

Is it end of the road for Paytm even as its

apps get a lifeline till March 15 from RBI?

After March 15, 2024, customers will not be able to receive any such credits

into the account with Paytm Payments Bank

OUR BUREAU
New Delhi/Mumbai
intech giant Paytm in its filing with the NSE
and BSE on Friday confirmed that the Paytm
Fapp, including its Made-in-India All-in-One
QR Code, Soundbox, and Card Machine, will con-
tinue to operate seamlessly even after March 15,
2024. The filing highlighted that the Reserve Bank
of India (RBI) had also confirmed this through its
released list of FAQs.

The mobile payments pioneer has reas-
sured its merchant partners that its devic-

es will continue to operate at full capacity.
They can continue to benefit from Paytm’s
pioneering solutions such as Paytm QR
codes, Soundbox, and Card Machines, just

as before, the filing said.

The filing further stated that Paytm’s parent
company - One 97 Communications Ltd - has Paytm founder and CEO Vijay Shekhar Sharma (file photo)
shifted its nodal account to Axis Bank (by opening
an Escrow Account) to continue seamless mer- “Withdrawal or utilisation of balances by its any inconvenience to such customers.” the Central
chant settlements as before. customers from their accounts including savings Bank directed.
“We are committed to providing seamless ser- bank accounts, current accounts, prepaid instru- The Central Bank also issues a set of FAQs,
vice to our merchant partners, with focus on com- ments, FASTags, National Common Mobility some of which stated that customers can continue
pliance and regulatory guidelines. With this guid- Cards, etc. are to be permitted without any restric- to use, withdraw or transfer your funds from their
ance, we assure our users that the Paytm app, and tions, upto their available balance (no change)” account upto the available balance in the account.
our pioneering devices like Paytm QR, Soundbox, the Central Bank further added Similarly, they can continue to use your debit card
Card Machine will continue to work as always. The “No banking services, other than those re- to withdraw or transfer funds upto the available
shift of the nodal account to Axis Bank (by open- ferred to in (ii) above, like fund transfers (irre- balance in your account.
ing an Escrow Account) will ensure seamless mer- spective of name and nature of services like AEPS, After March 15, 2024, customers will not be
chant settlements as before. We strive to continue IMPS, etc.), BBPOU and UPI facility should be able to deposit money into your account with Pay-
to empower Indians, contributing significantly to provided by the bank after March 15, 2024 (ex- tm Payments Bank. No credits or deposits other
the country’s financial inclusion journey,” said a tended from the earlier stipulated timeline of Feb- than interest, cashbacks, sweep-in from partner
Paytm spokesperson in its filing. ruary 29, 2024). However, for (ii) above (viz. for banks or refunds are allowed to be credited. Re-
Earlier on Friday the RBI gave Paytm pay- withdrawal or utilisation of available balance by funds, cashbacks, sweep-in from partner banks or
ments bank a 15-day extension on accepting de- customers or wallet holders), such fund transfers interest are permitted credits into your account
posits and issued a series of FAQs in response to including AEPS, IMPS and UPI may be allowed even after March 15, 2024.
customer queries. anytime” the RBI release said. After March 15, 2024, customers will not be
In its release the Central Bank said “No fur- “It is also directed that withdrawals up to their able to receive any such credits into the account
ther deposits credit transactions or top-ups shall available balance should be facilitated by the bank with Paytm Payments Bank.
be allowed in any customer accounts, prepaid in- from all accounts and wallets, excluding the ones In response the FAQs issued Paytm founder
struments, wallets, FASTags, National Common that are frozen or lien marked by Law Enforce- Vijay Shekhar Sharma said in a post on X “Paytm
Mobility Cards, etc. after March 15, 2024 (extend- ment or judicial authorities,” RBI added QR, Soundbox and EDC (card machine) will con-
ed from the earlier stipulated timeline of February “Further, it is directed that the bank shall facil- tinue to work like always, even after March 15. The
29, 2024), other than any interest, cashback, sweep itate a seamless withdrawal of customer deposits latest FAQ issued by RBI on point #21 clarifies it
in from partner banks or refunds which may be that are parked with partner banks under the auto- unambiguously. Do not fall for any rumour or let
credited anytime.” the RBI said. matic ‘sweep-in sweep-out’ facility without causing anyone deter you to championing Digital India.”

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