Paytm’s nodal account is like a master account, which settles the transactions of all customers and merchants. This means that those who have an account with Paytm Payments Bank can easily settle their transactions even after March 15.
Paytm Payments Bank has been given 15 days more time by RBI, which means that 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 shifted 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 those who have an account with Paytm Payments Bank can easily settle their transactions even after March 15. Besides, 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 any other bank then it may be difficult to operate the UPI service. However, now the situation has become clear due to shifting of nodal account in Axis Bank.
Many services will continue to operate even after March 15
This move by Paytm will allow continuity of Paytm QR, Soundbox and Card Machine 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 shoppers as before.
These services will not run after March 15
RBI had said that if Paytm connects with other banks instead 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 instruments, wallets, Fastag, National Common Mobility Card etc.
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