India’s Paytm Payments Bank has been given extra time by the central financial institution to wind down its operations, whereas its mum or dad firm has signed on a brand new banking accomplice to attempt to preserve a few of its in style merchandise operating and survive its present disaster.
The Reserve Bank of India (RBI) in January ordered Paytm Funds Financial institution, an affiliate of One 97 Communications (OCL) – also referred to as Paytm, to cease accepting any recent deposits in its accounts, or wallets, from Feb. 29. That deadline was prolonged to March 15, the RBI mentioned on Friday.
“The corporate (Paytm) has shifted its nodal account to Axis Financial institution (by opening an escrow account) to proceed seamless service provider settlements as earlier than,” Paytm mentioned in a launch.
Paytm QR codes, soundbox and card machines will proceed to work as earlier than, even past March 15, the corporate added.
The motion in opposition to Paytm Funds Financial institution was triggered by what RBI officers known as persistent non-compliance with rules. Earlier this week, India’s monetary crime combating company started trying into particulars of abroad transactions on the platform.
RBI mentioned the deadline extension was to permit prospects, together with retailers, “a bit of extra time” to make various preparations.
“No additional deposits or credit score transactions or high ups shall be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, Nationwide Widespread Mobility Playing cards, and so forth after March 15, 2024,” it mentioned.
Individually, the RBI additionally issued an in depth set of buyer clarifications.
The regulator mentioned prospects can withdraw or use funds from their Paytm Funds Financial institution accounts and wallets till the time these funds are exhausted however they can’t add any recent funds after March 15.
Clients who obtain their salaries or different transfers together with authorities subsidies into these accounts need to make alternate preparations by mid-March.
Retailers utilizing Paytm’s QR codes for accepting funds can proceed to take action if these QR codes are linked to accounts apart from these held by Paytm Funds Financial institution.
The financial institution has almost a fifth share of India’s toll collections by means of a product known as FASTag. The RBI mentioned these FASTags can’t be recharged or topped up after March 15.
Non-executive chairman of Paytm Funds Financial institution Vijay Shekhar Sharma has met with RBI officers and the finance minister in search of to foyer in opposition to the crackdown, however RBI Governor Shaktikanta Das mentioned on Monday that there can be no evaluate of its resolution.
© Thomson Reuters 2024
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
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