Paytm partners with Axis Bank to settle merchant payments amid RBI crackdown against payments bank

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New Delhi: Amid the Paytm Payments Bank crisis, fintech company Paytm has decided to sign a partnership deal with Axis Bank to initiate the smooth settlement of merchant transactions. One97 Communications, which is the parent company of Paytm, has shifted its nodal account to Axis Bank from Paytm Payments Bank. This move will allow continuity of Paytm QR, Soundbox, card machine after the March 15 set by the Reserve Bank of India (RBI), as per a regulatory filing by the company.

This comes after RBI advised all merchants and customers to shift their accounts from Paytm Payments Bank to other banks before the March 15 deadline. The deadline for the payments bank was extended by 15 more days to close most of its operations, including deposit and credit transactions.

In its regulatory filing, Paytm said, “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,” it further said.

 

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