‘Don’t fall for any rumour’: Paytm QR, Soundbox and EDC to work even after March 15, claims Vijay Shekhar Sharma

Paytm QR, Soundbox and EDC (card systems) will continue to function even after March 15, clarified the fintech major’s founder and managing director Vijay Shekhar Sharma on Friday, February 16.

Referring to a document released by the Reserve Bank of India (RBI), which detailed the frequently asked questions (FAQs) over the business restrictions imposed on Paytm Payments Bank, Sharma claimed that the RBI’s clarification is ‘unambiguous’ and urged users not to fall for any rumours.

Also Read: RBI extends Paytm Payments Bank transaction curb deadline to 15 March

Sharma took to social media platform ‘X’ and said, ‘’Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by RBI on point #21 clarifies it unambiguously. Do not fall for any rumour or let anyone deter you to championing Digital India!”

Point 21 in the RBI’s circular relates to Paytm QR code, soundbox and POS terminal, over which Sharma clarified that all these functions will continue to work even after March 15. He added that the RBI has clarified it ‘unambiguously’. Here’s what Point 21 of the RBI circular states:

‘’I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?– Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.”

In its FAQs, the RBI specified that after March 15, 2024, customers will not be able to deposit money into their account with Paytm Payments Bank Ltd (PPBL). No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

The RBI on Friday gave 15 days more till March 15, 2024, to PPBL to stop deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants.

As per a January 31 order of the central bank, PPBL was asked to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29.

The RBI said this is being done keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest.

“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” said the central bank.