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RBI has given additional time of 15 days to Paytm Payments Bank, which means customers will be able to use wallet, account, Fastag and other Paytm banking services till March 15. After this, restrictions will be imposed on Paytm Payments Bank. Meanwhile, Paytm's parent company has informed that it has transferred its nodal (main) account to Axis Bank.
Paytm's nodal account is like a master account, which settles the transactions of all customers and merchants. This means that people who have an account with Paytm Payments Bank can easily settle their transactions even after March 15. Apart from this, services like QR code, soundbox and card machine will also continue.
What is the role of nodal account?
Paytm operates the nodal account through its subsidiary Paytm Payments Bank Limited. After the strictness of RBI, questions started being raised on this also. It was being said in the reports that if this account is not shifted to some other bank then it may be difficult to operate the UPI service. However, now the situation has become clear with the nodal account being shifted to Axis Bank.
Many services will continue to operate even after March 15
With this step of Paytm, the continuity of Paytm QR, Soundbox and Card Machine will remain even after March 15. Paytm said in the statement that the company has transferred its main account to Axis Bank (by opening an escrow account) to continue seamless transactions for buyers. First.
These services will not run after March 15
RBI had said that if Paytm connects with other banks in place of PPBL, then services like Paytm QR Code, Paytm Soundbox or Paytm POS Terminal will continue. However, after March 15, 2024, no further deposits, credit transactions or top-ups will be allowed in customer accounts, prepaid devices, wallets, Fastag, National Common Mobility Cards, etc.