Paytm shifts Nodal account to Axis Bank, RBI extends unit wind-down date to March 15

India's Paytm Payments Bank has been given more time by the central bank to wind down its operations, while its parent company has signed on a new banking partner to try to keep some of its popular products running and survive its current crisis.

The Reserve Bank of India (RBI) in January ordered Paytm Payments Bank, an associate of One 97 Communications (OCL) - also known as Paytm, to stop accepting any fresh deposits in its accounts, or wallets, from Feb. 29. 

That deadline was extended to March 15, the RBI said on Friday.

Paytm QR codes, soundbox and card machines will continue to work as before, even beyond March 15, the company added.

The action against Paytm Payments Bank was triggered by what RBI officials called persistent non-compliance with regulations. 

Earlier this week, India's financial crime fighting agency began looking into details of overseas transactions on the platform.

Separately, the RBI also issued a detailed set of customer clarifications.

The regulator said customers can withdraw or use funds from their Paytm Payments Bank accounts and wallets until the time those funds are exhausted but they cannot add any fresh funds after March 15.