According to reports, Paytm, a leading fintech company, intends to give RBL Bank control over its point of sale (PoS) terminals, which are used to process card payments at retail locations. The parent company of Paytm, One 97 Communications, will continue to be in charge of running and maintaining these terminals under the Paytm name.
Still, RBL Bank will now be in charge of processing transactions, according to ET. Technically speaking, this procedure is known as the “bin.” As a result, RBL Bank’s “bin” will be used to settle any Visa, Mastercard, or RuPay card transactions made at Paytm’s PoS terminals.
The transactions will be routed to Axis Bank’s nodal accounts in order to be settled with the merchants later. Paytm is now using Axis Bank, but it may open nodal accounts with other banks in the future. As a result, card payments will be sent to Axis Bank from the RBL Bank system.
Conclusion
This happened as a result of an RBI decision that was subsequently extended to March 15 and forbade Paytm Payments Bank from accepting deposits, credit transactions, or top-ups in any of its client accounts after February 29. After the RBI’s pronouncement, the price of Paytm shares fell by about 60%. Furthermore, last month, six mutual funds entirely sold their shares in Paytm’s parent firm, while another six drastically lowered their holdings. By the end of February, the total amount of shares divested was over 91 lakh, valued at INR 380 Cr.
