Updated February 23rd, 2024 at 11:09 IST

Paytm moves nodal account to Axis Bank: Impact on Customers

The decision to shift the nodal account follows regulatory concerns and operational adjustments for Paytm Payments Bank Ltd (PPBL).

Reported by: Business Desk
Paytm | Image:Paytm/Facebook
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Paytm in focus: Digital payments platform Paytm has initiated a crucial transition by relocating its nodal account to Axis Bank, impacting millions of its users. The strategic move, aimed at ensuring uninterrupted operations of key services such as Paytm QR, Soundbox, and card machines, comes ahead of the Reserve Bank of India's (RBI) March 15 deadline.

Image Credits: ANI

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The decision to shift the nodal account follows regulatory concerns and operational adjustments for Paytm Payments Bank Ltd (PPBL). 

With the RBI's directive prompting Paytm to expedite the migration process for its extensive user base, the company, boasting over 300 million users and a network of 10 million merchants, faces the challenge of executing a seamless transition while maintaining its market dominance.

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A Paytm spokesperson mentioned, "The migration of the nodal account to Axis Bank, via the opening of an Escrow Account, will ensure uninterrupted merchant settlements as usual," as per media reports. 

Industry insiders suggest that the migration process could span between three to six months, while Paytm's pursuit of a third-party application provider (TPAP) licence from the National Payments Corporation of India (NPCI) aligns with its goal of sustaining digital payment capabilities, particularly through the Unified Payments Interface (UPI).

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Discussions are underway between Paytm and major banking entities like HDFC Bank and State Bank of India (SBI) to guarantee uninterrupted UPI services for users. 

Financial performance

The payments aggregator's losses narrowed to Rs 253.6 crore in the December quarter, from Rs 323.7 crore in the same quarter a year ago. 

Paytm’s revenue rose to Rs 2,137.90 crore, from Rs 1,980.3 crore in the same quarter previous fiscal.  

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The company’s Earnings per share (EPS) stood at -4 during the quarter, from -5 in the same quarter a year ago.

The company's stocks have plunged by over 48 per cent in the past month after the RBI suspended Paytm Payments Bank’s operations, citing persistent non-compliance with RBI rules.

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As of 10:43 am, shares of Paytm were trading 1.18 per cent at Rs 392.95 per share, on Friday.

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Published February 23rd, 2024 at 10:57 IST