Paytm QR, Soundbox and EDC will continue to work even after March 15, Vijay Shekhar Sharma, the founder and managing director of Paytm, clarified on Friday. Referring to a document released by the Reserve Bank of India (RBI), Sharma urged users not to fall for any rumours after it detailed the frequently asked questions (FAQs) over the business restrictions imposed on Paytm Payments Bank.
Sharma took to social media to clear the air. Point 21 in the RBI’s circular relates to Paytm QR code, soundbox and POS terminal, over which Sharma clarified that all these functions will continue to work even after March 15. The RBI specified that after March 15, 2024, customers will not be able to deposit money into their account with Paytm Payments Bank Ltd (PPBL).
The RBI on Friday gave PPBL 15 more days till March 15, 2024, to stop deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants. As per a January 31 order of the central bank, PPBL was asked to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29.
The central bank emphasized that this extension was being done keeping in view the interest of customers (including merchants) of PPBL, who may require a little more time to make alternative arrangements and the larger public interest.
“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” said the RBI.
Sharma’s clarification and the RBI’s extension offer relief to Paytm users and merchants who were concerned about the functionality of these services after March 15. As of now, users can continue to use Paytm QR, Soundbox, and EDC without any interruptions.
