Axis Bank: Paytm shifts back-end payment settlements to Axis Bank from Paytm Payments Bank

Axis Bank: Paytm shifts back-end payment settlements to Axis Bank from Paytm Payments Bank



One 97 Communications, which runs Paytm, has shifted its nodal accounts or escrow accounts to private-sector lender Axis Bank, the company said in a filing to the BSE.

This will ensure that merchants who accept digital payments through Paytm will be able to continue doing so. The Reserve Bank of India had asked Paytm to close all its nodal accounts with Paytm Payments Bank latest by February 29.

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Taking to ‘X’ after the RBI released a set of FAQs on Paytm Payments Bank, Paytm founder Vijay Shekhar Sharma said on Friday that soundbox, QR code and point of sales terminals deployed by Paytm will continue to operate even after March 15.

On Friday, the central bank gave Paytm Payments Bank a 15-day extension to continue offering banking services, beyond which customers will only be able to withdraw funds from these accounts, prepaid wallets or Fastags.

ET wrote on February 3 that Paytm was in talks with HDFC Bank, Axis Bank and Yes Bank for shifting of the settlements business.



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