Paytm Merchants Not Impacted by RBI Directive and Can Still Accept Payments; Paytm Soundbox, QR, EDC Machines Will Keep Working As Usual

During a conference call on RBI directives to Paytm's associate bank, Bhavesh Gupta, President and COO, said, "We will ensure the least amount of disturbance to merchants. We will do whatever is the right approach in this matter."

RBI and Paytm Logos (Photo Credit: Wikimedia Commons)

New Delhi, February 1: Paytm merchants need not worry following Reserve Bank of India's (RBI) direction to its associate bank as Paytm Soundbox, QR, EDC machines will keep working as usual, and merchants will still be able to accept payments. Paytm offers acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships.

“Paytm's offline merchants network offering and device business like Paytm Soundbox, EDC, QR will remain unimpacted by the Reserve Bank of India's (RBI) direction to its associate bank,” said the fintech company, adding that it will also continue onboarding merchants to its platform. Paytm Payments Bank Services Have Been Curtailed by RBI Over ‘Persistent Non-Compliances and Continued Material Supervisory Concerns’: Report.

During a conference call on RBI directives to Paytm's associate bank, Bhavesh Gupta, President and COO, said, "We will ensure the least amount of disturbance to merchants. We will do whatever is the right approach in this matter."

The company also noted that its Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. "There will be no disruption in PG business and it will operate like earlier, now we offer merchants several other options, which is a very quick process," Gupta added.

Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine will continue as usual, where it can onboard new offline merchants as well. For its existing online merchants, Paytm Payment Gateway business will continue to offer payment solutions. Meanwhile, Paytm clarified that PPBL is run independently by its management and board. Paytm Share Price Plummet by 20% As RBI Puts Restrictions on 'Paytm Payment Banks Over Non-Compliance and Material Supervisory Concerns.

“We would take this opportunity to clarify that as per banking regulations, Paytm Payments Bank Limited is run independently by its management and board. While OCL is allowed to have two board seats on the board of Paytm Payments Bank Limited, as a part of its shareholder agreement, OCL exerts no influence on the operations of Paytm Payments Bank Limited, other than as a minority board member, and minority shareholder,” Paytm said in an exchange filing.

(The above story first appeared on LatestLY on Feb 02, 2024 10:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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