The Reserve Bank of India clarified that the widely used Paytm QR code and Soundbox by merchants will not be affected by its action on Paytm Payments Bank if they are linked to accounts with other banks, it said in a ‘Frequently Asked Questions’ document released on Friday.
The central bank gave an additional 15 days, till March 15, to Paytm Payments Bank to stop deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags.
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If the Paytm QR code, Paytm Soundbox is not linked to Paytm Payments Bank
• As a merchant using Paytm QR code, Paytm Soundbox, or Paytm POS terminal linked to a different bank account (not with Paytm Payments Bank), can I continue using this setup after March 15?
Yes, if your fund transactions are associated with any bank account other than Paytm Payments Bank, you can continue using this arrangement beyond March 15.
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If the Paytm QR code, Paytm Soundbox is linked to Paytm Payments Bank
• If I am a merchant accepting payments using a Paytm QR code, Paytm Soundbox, or Paytm POS terminal linked to my bank account or wallet with Paytm Payments Bank, can I continue this setup after March 15?
No, after March 15, you won’t be able to receive any credit into your bank account or wallet with Paytm Payments Bank, except for refunds, cashbacks, sweep-ins from partner banks, or interest. To avoid inconvenience, it is recommended to obtain a new QR code linked to an account with another bank or wallet for receiving payments. Additionally, consider changing your bank account details (used for receiving payments) through your service provider.
Paytm chief breathes air
Vijay Shekhar Sharma took to the social media platform ‘X’ to share the RBI FAQs and highlighted that Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.
Shekhar, who holds a 51 per cent stake in Paytm Payments Bank, said, “Do not fall for any rumour or let anyone deter you from championing Digital India!”