RBI provides update on Paytm payments bank: Deadline extended, merchant options clarified
The Reserve Bank of India (RBI) has provided some clarity regarding the future of Paytm Payments Bank through a recent FAQ release. While restrictions on deposits and credit transactions are now extended to March 15th, even after this deadline, merchants can continue accepting payments via Paytm QR codes, soundboxes, or PoS terminals.
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Following the Reserve Bank of India's (RBI) restrictions on Paytm Payments Bank in January, confusion remained about the platform's future services. Last week, the RBI released FAQs clarifying the situation.
Twenty-five percent of the merchant base at Paytm is in the process of migrating to Google Pay, PhonePe, BHIM application app. And, this is likely to increase further. In other parts of the country, the competitors of Paytm are making efforts to win over merchants.
It has been stated that several players such as PhonePe, Google Pay, and banks such as HDFC Bank and State Bank of India (SBI) are deploying several thousand salesforce to attract merchants which include kirana stores and retailers.
The FAQs released by RBI have extended the deadline to March 15 for restrictions on deposits and credit transactions. It has been clarified that merchants can accept payments via Paytm QR code, soundbox, or PoS terminal even post March 15. This is possible if the transfer of funds is linked to any other bank apart from Paytm Payments Bank.
