Paytm shares surged by 5 percent, hitting the upper circuit for the second consecutive session on February 19. This comes as the crisis-hit company partnered with Axis Bank for the settlement of merchant payments. By 9:16 am, the stock was trading at Rs 358.35 on the NSE.
One97 Communications has transitioned its nodal account to Axis Bank via an escrow account it established. The company, which owns Paytm along with its various services like Paytm QR, Soundbox, and card machines, assured that operations will continue uninterrupted for all its merchant partners, as per a company statement.
The Reserve Bank of India (RBI) has prolonged the deadline for ceasing operations and for Paytm Payments Bank account holders to transfer their assets until March 15. Furthermore, the RBI has released a set of frequently asked questions (FAQs) addressing various concerns of all Paytm Payments Bank account holders, such as inquiries about remaining balances, UPI payments, and FASTags.
Despite the transfer of the Paytm Nodal Account for merchant transaction settlements to Axis Bank and the extended deadline, Citi stated that business operations for quarters or devices associated with non-Paytm Payment Bank accounts remain unaffected. The statement highlighted Paytm’s previous estimation that 10-15 percent of its merchant base utilizes PPBL accounts.
