Paytm founder assures continuity of QR, soundbox, and EDC services beyond March 15, dispelling rumors

Vijay Shekhar Sharma, the CEO and founder of Paytm, has reassured users that key services such as Paytm QR, Soundbox, and EDC (card machine) will continue to function smoothly beyond March 15, 2024. His announcement came in response to concerns raised after the Reserve Bank of India (RBI) extended the deadline for Paytm Payments Bank Limited (PPBL) to halt certain operations.

Confirmation from RBI FAQ

Sharma cited Point 21 of the FAQs released by the RBI on February 16, 2024, which unequivocally supports the continuity of these services. According to Point 21, users whose fund transactions are linked to bank accounts other than Paytm Payments Bank can continue using these services even after March 15, 2024. This clarification brings relief to merchants who rely on Paytm QR codes, Soundbox, or POS terminals linked to accounts other than Paytm Payments Bank.

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The RBI extended the deadline for PPBL to cease key services, including credit transactions, deposits, wallet, and FASTags, until March 15, 2024. This decision was made to allow customers, including merchants, more time to make alternative arrangements. The RBI's circular also provided a list of FAQs related to Paytm Payments Bank operations.

Maintenance of previous deadline

While the deadline for key services was extended, the RBI maintained the February 29, 2024 deadline for the termination of Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd, which are maintained by Paytm Payments Bank Limited.

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Overall, Paytm users can expect uninterrupted service continuation for essential features like Paytm QR, Soundbox, and EDC beyond March 15, 2024. The extension of the deadline by the RBI provides breathing space for users to transition smoothly, ensuring minimal disruption to digital transactions.