by Paytm’s CEO and founder, Vijay Shekhar Sharma, assured users that the Paytm QR, Soundbox, and EDC (card machine) will keep working without a hitch after March 15, 2024. Sharma reaffirmed in a tweet that there would be no interruptions to these services.Even after March 15, the EDC (card machine), Soundbox, and Paytm QR will all function as usual.
Point #21 is made clear in the RBI’s most recent help document. Never allow anyone discourage you from supporting Digital India or fall for any rumours’, Sharma tweeted.The Reserve Bank of India (RBI) released FAQs on February 16, 2024, and he emphasised that point 21 of them reaffirmed this continuity crystal clear. He also pleaded with Paytm users to ignore any baseless gossip.
What does point 21 of RBI FAQ say?
The RBI FAQs point 21 says, “Yes. This arrangement will remain in effect even after March 15, 2024, provided that your receipt and transfer of funds are associated with a bank account other than Paytm Payments Bank.” For retailers using Paytm QR codes, Soundbox, or POS terminals connected to accounts other than Paytm Payments Bank, this confirmation is a comfort.
The earlier deadline set by the Reserve Bank of India (RBI) for Paytm Payments Bank Limited (PPBL) to cease essential services, such as credit transactions, deposits, wallets, and FASTags, was extended on Friday.In addition to releasing a list of frequently asked questions on Paytm Payments Bank, the central bank announced in a new circular that the new deadline is March 15.
“Keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest, the following directions are issued by the Reserve Bank of India under section 35A of the Banking Regulation Act, 1949 in partial modification of the earlier Directions dated January 31, 2024,” the RBI stated in its latest circular.
Prior to February 29, 2024, the central bank had requested that Paytm Payments Bank cease all significant operations. It is also important to note that the RBI has upheld the deadline of February 29, 2024, for the closure of One97 Communications Ltd. and Paytm Payments Services Ltd.’s Nodal Accounts, which are held by Paytm Payments Bank Limited.
The central bank ordered PPBL on January 31 to cease all deposits, credit transactions, and top-ups in all customer accounts, prepaid cards, wallets, FASTags, and National Common Mobility Cards after February 29.The RBI said that this is being done with consideration for the interests of the general public as well as PPBL customers, including merchants, who might need a little more time to make other arrangements.
“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” stated the Bundesbank.
- Can I keep this setup after March 15 if I’m a merchant accepting payments using a Paytm QR code, Paytm Soundbox, or Paytm POS terminal connected to my bank account or wallet with Paytm Payments Bank?
No, aside from refunds, cashbacks, sweep-ins from partner banks, and interest, you won’t be able to get any credit into your bank account or wallet with Paytm Payments Bank after March 15. Getting a new QR code for receiving payments connected to a different bank account or wallet is advised to prevent any inconvenience. Additionally, think about modifying your service provider’s bank account information (which is used to receive payments).
Paytm chief breathes air
In addition to sharing the RBI FAQs on social media, Vijay Shekhar Sharma made it clear that the Paytm QR, Soundbox, and EDC (card machine) will all function as usual even after March 15.With a 51% ownership in Paytm Payments Bank, Shekhar declared, “Do not let anyone deter you from championing Digital India!”
