RBI has imposed restrictions on Paytm. 🏦👩💼 Due to irregularities in transactions, it is possible that Paytm, which has been a shining light in the field of digital banking until now, will disappear soon. But the company has already announced that all Paytm services will continue as is. 🎉📢 Currently, Paytm is working under the ownership of the parent company One97 Communications. Paytm Payments Bank (PPBL) is running under its auspices. Now its nodal account has been changed from PPBL to Axis Bank. So the users must do a job. At present, users using Paytm will have to do KYC (No Unique Customer) once again. 🌐👏
Why KYC..KYC is a vital part of banking regulations in India. This will be necessary to create a risk free environment for consumers along with curbing financial crimes and prevent crimes like money laundering. That is why RBI has made e-KYC mandatory for every customer. KYC details are also required to be updated when the bank makes any changes. Because experts say it is essential to maintain the security and integrity of customer data.
Axis Bank Managing Director and CEO Amitabh Chaudhary said that even earlier, Paytm merchants had to undergo personal KYC to get onboarded by the lender. But as per RBI's new directives, Paytm Payments Bank will not provide any banking services after March 15. Earlier that date was till February 29. However, it has been extended till March 15 with the intention that the KYC process will not be completed before this.
What should users do now..Users using digital payments on the Paytm platform will now have to update their KYC once again. But the complete information regarding this is not yet officially out. Experts say this clearly.
Why the change in nodal account? The RBI mandate requires intermediaries who accept online payments to maintain nodal accounts for hassle-free flow of funds. A nodal account acts as a special purpose account. Collects funds from participating banks. Facilitates payments to specific merchants. That is why PPBL managed One97 Communications Limited (OCL) and Paytm Payment Services Limited (PPSL) have shifted to Axis Bank instead of canceling their nodal accounts. Hence users have to update once again for continuous services.
