Paytm QR, Soundbox and EDC (card systems) will continue to work even after March 15, the fintech major’s founder and managing director Vijay Shekhar Sharma explained on Friday, February 16. Referring to a document released by the Reserve Bank of India (RBI), which detailed the frequently asked questions (FAQs) about the business restrictions imposed on Paytm Payments Bank, Sharma claimed that the RBI’s explanation was “unequivocal” and urged users not to fall for any rumors
Sharma took to social media platform ‘X’ and said, ”Paytm QR, Soundbox and EDC (card machine) will continue to work as always, even after March 15. The latest FAQ issued by RBI on point #21 makes it clear unambiguously. Don’t fall for any rumor or let anyone discourage you from championing Digital India!”
Point 21 in the RBI’s circular refers to Paytm QR code, sound box and POS terminal, of which Sharma clarified that all these features will continue to work even after March 15. He added that the RBI has clarified it “unequivocally”. Here is what Point 21 of the RBI circular says:
”I am a merchant and I accept payments via Paytm QR code, Paytm sound box or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this arrangement even after March 15, 2024?
– Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.”
The RBI on Friday gave 15 more days till March 15, 2024 to Paytm Payments Bank Ltd (PPBL) to stop deposits, credit transactions or top-ups in some customer accounts, wallets and FASTags, keeping in mind the interest of customers, including merchants.
According to the central bank’s order dated January 31, PPBL has been asked to stop further deposits, credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags and National Common Mobile Cards, after February 29.
The RBI said this is being done keeping in mind the interest of customers (including traders) of PPBL who may require some more time to make alternative arrangements and the larger public interest.
“Further, it is directed that the bank facilitate seamless withdrawal of customer deposits which are parked with partner banks under the automatic ‘sweep-sweep-out’ facility without causing any inconvenience to such customers,” the central bank said.
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Published: 16 Feb 2024, 18:49 IST