QR Codes Uninterrupted: Paytm Eases Concerns For Merchants

The Reserve Bank of India (RBI) has imposed restrictions on Paytm Payments Bank, effective from February 29, following concerns about persistent non-compliance and material supervisory issues.?

While the bank is now prohibited from accepting additional deposits, conducting credit transactions, or facilitating top-ups in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, and other services, the merchants will be allowed to accept payments from their QR codes beyond Feb 29.?

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Payment devices such as Paytm Soundbox and card machines will also continue to remain operational as always, as per the fintech company.

RBI Directive Raises Concerns Over Paytm's QR Code Impact

On January 31, the Reserve Bank of India (RBI) issued a directive to Paytm Payments Bank Ltd (PPBL), instructing them to cease accepting deposits or top-ups in customer accounts, wallets, FASTTags, and other financial instruments after February 29. This development has raised concerns about the potential impact on Paytm's QR codes and their functionality.

Paytm Assures Smooth Transition as Merchants' Settlement Accounts Shift to Preferred Banks

Some merchants have their repayments processed through the PPBL bank account. We're moving their settlement account to another bank of their choice for continued seamless settlements and repayments. This process, similar to mobile number portability, will happen in the background and won't affect merchants and customers at the front-end, assures the company.

The company is in talks with India’s leading banks and will partner with one of them to ensure that there is no disruption to merchants.

Reuters

“Over the past two years, Paytm has collaborated with multiple banking partners for a host of services. For services like Paytm QR, where Paytm Payments Bank, acts as a back-end bank, these services will seamlessly transition to other partner bank/s. This means that there will be continued service available to its merchant partners,” a company spokesperson said.

Following an update by the RBI during the Monetary Policy Committee regarding Paytm Payments Bank, the Deputy Governor emphasized that the opportunity for partnership with Paytm Payments Bank will be a prerogative of banks, paving way for ongoing and possible collaboration between Paytm Payments Bank and other banking institutions. Such a partnership will aim to establish a strong framework for offering innovative financial solutions to customers.

Paytm management assured that there would be no disruption to merchants and their payment services.

From bustling metropolises to remote rural areas, businesses of all sizes are embracing Paytm's innovative solutions. Merchants from every corner of the country are actively endorsing the Paytm brand, contributing to its stronghold as a leading player in India's payments landscape.

These widespread endorsements serve to solidify Paytm's reputation as a trusted partner for businesses nationwide, further cementing its position at the forefront of India's rapidly evolving payments industry.

(With IANS inputs)

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