Paytm Forms Strategic Partnership with Axis Bank to Ensure Merchant Transaction Continuity

In response to the Reserve Bank of India’s (RBI) directive, Paytm, a leading fintech player, has announced a strategic partnership with Axis Bank to guarantee uninterrupted merchant transaction services. The collaboration emerges amidst the operational curtailments imposed on Paytm Payments Bank by RBI, necessitating a transition of accounts to alternative banking institutions before the stipulated deadline of March 15. One97 Communications, Paytm’s parent company, has transitioned its nodal account to Axis Bank, thereby ensuring the continued functionality of Paytm’s QR, Soundbox, and card machine services for merchants and customers alike.

The move to partner with Axis Bank is designed to seamlessly replace the nodal account previously held with Paytm Payments Bank, safeguarding the settlement process for merchant transactions. Paytm Payment Services Ltd (PPSL), a subsidiary of One97 Communications, has been utilizing Axis Bank’s services since its inception, indicating a longstanding relationship between the two entities. This strategic shift is expected to mitigate the impact of the RBI’s advisory for customers and merchants of Paytm Payments Bank to relocate their banking operations by the extended deadline.

This development follows a report by the Financial Intelligence Unit (FIU), highlighting KYC irregularities and potential money laundering risks associated with thousands of accounts linked to Paytm Payments Bank. The RBI’s extension of the deadline to March 15 aims to facilitate a smooth transition for PPBL customers and merchants, ensuring that they can continue their transactions and access their funds without restrictions.

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