One97 Communications, owner of Paytm, said Friday it has shifted its nodal account to Axis Bank from Paytm Payments Bank.

An escrow account has been opened for this purpose to ensure “seamless merchant settlements as before”.

The nodal account of Paytm is like a master account in which all its customers, merchant transactions are settled.

"This arrangement is expected to seamlessly replace the nodal account that OCL (One97 Communications) was using with Paytm Payments Bank. Paytm Payment Services Ltd (PPSL), OCL’s wholly owned subsidiary, has already been using the Axis Bank services, since its inception," the fintech firm said in a regulatory filing.

The move will allow continuity of Paytm app and devices like Paytm QR, Soundbox and Card Machine to work after the new 15 March deadline set by the Reserve Bank of India (RBI).

Earlier this week, Axis Bank chief executive Amitabh Chaudhary had reportedly said that the lender could work with Paytm if RBI permits.

Meanwhile, the RBI has advised customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by 15 March, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions.

The RBI in the list of FAQs has clarified that Paytm QR code, Paytm Soundbox or Paytm POS terminal will continue to work after 15 March if it is linked to other banks instead of PPBL.

The RBI has advised PPBL customers to obtain a fresh QR code linked to an account with another bank or wallet to receive payments after 15 March.

"You may also change your bank account details (in which you receive payments) through your service provider," Paytm management had said earlier this month.

Paytm will also work with other banks to change the virtual payment address linked to PPBL that merchants use for accepting transactions, so that there is no disruption in their transactions after the RBI set a deadline.