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Tag: One97 Communications

  • Paytm Partners With Axis Bank For Merchant Payments Settlement; Read Details | Companies News

    New Delhi: One97 Communications (OCL), the parent company of Paytm, has announced a strategic move to shift its nodal account to Axis Bank from Paytm Payments Bank. This decision comes in response to the Reserve Bank of India’s (RBI) directive to terminate its nodal account with Paytm Payments Bank by February 29, citing persistent non-compliance and supervisory concerns.

    What OCL Revealed In Exchange Filing?

    In an exchange filing, OCL revealed that the transition to Axis Bank aims to ensure continuity and seamless settlements for merchants. (Also Read: RBI Gives 15-Day Relaxation To Paytm: Check What You Can Do And What Can’t)

    A nodal account plays a crucial role for intermediaries like Paytm, as it holds funds on behalf of customers and vendors. With this shift, OCL aims to maintain smooth operations and enhance balance flow. (Also Read: Techie, With Rs 43 Lakh Salary, Seeking Job Where He Can Get High-Protein Food; Viral Story Amazes Netizens)

    Axis Bank Partnership

    Paytm Payment Services Ltd (PPSL), a wholly-owned subsidiary of OCL, has been utilizing Axis Bank’s services since its inception. This pre-existing partnership adds to the confidence in the transition process.

    An official from Axis Bank emphasized that the new arrangement will facilitate the flow of money through the nodal account, reinforcing the commitment to efficient financial transactions.

    RBI’s Directive And Deadline Extension

    The RBI had initially ordered the termination of OCL and PPSL’s nodal accounts maintained by Paytm Payments Bank by February 29, due to compliance issues and supervisory concerns. However, the central bank extended the deadline till March 15 for the payments bank to halt new deposits or credit transactions.

    Impact On Merchants

    In its FAQ, the RBI clarified that merchants using Paytm’s services can continue accepting payments through QR codes, soundboxes, or point-of-sale terminals even after March 15, provided their accounts are linked to banks other than Paytm Payments Bank.

    However, merchants linked to Paytm Payments Bank will only be able to receive refunds or cashback, with no other credit transactions allowed.

    According to Paytm’s earnings presentation for the third quarter of the financial year 2024, the company has over 10.6 million soundboxes and point-of-sale devices deployed in the market, underlining its significant presence in the payment solutions sector.

  • Paytm Tentative Timeline To Restart Loan Sanctioning Ends Today, February 14 | Companies News

    New Delhi: The tentative timeline shared by fintech firm Paytm to resolve operational challenges coming in the way of its lending business and restart sanctioning of new loans is ending on February 14.

    One97 Communications President and Chief Operating Officer Bhavesh Gupta in a company conference call on February 1 had said that the company will not be issuing new loans for “maybe a couple of weeks” before resolving operational challenges posed due to RBI restriction Paytm Payments Bank Limited (PPBL).

    The central bank, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.

    While the lending business of Paytm is not linked with PPBL, there are around 10-15 per cent of Paytm merchants, which are around 60,000-70,000 merchants, who are estimated to have autopay mandate set up through their PPBL account.

    Paytm needs to migrate repayments linked to PPBL to other banks to avoid disruption in repayments.

    “We will not be originating loans for maybe a couple of weeks before we solve for the operational challenges, and then we go back to normal,” Gupta had said.

    In the December quarter, the company distributed loans worth Rs 15,535 crore comprising merchant loans, personal loans, and postpaid loans.

    The total number of unique users who have taken a loan through Paytm increased by 44 lakhs over the last 1 year to 1.25 crore.

    Paytm distributed Rs 3,579 crore merchant loans, Rs 4460 crore personal loans, and Rs 7,496 crore postpaid loans in December 2023.

    An email query sent to Paytm in this regard elicited no immediate reply.