Paytm is all set to launch its ‘Payments Bank ‘ service on May 23, The launch will also see Paytm merging its wallet into Payments Bank. The move comes right after ‘One97 Communications,’ the parent company of Paytm received RBI’s final nod for converting the digital payments business into a Payments Bank earlier this week. Also Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your moneyAlso Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
Paytm has already started sending out messages to its present wallet holders informing them about the move. Renu Satti, the current Executive and Vice President will be CEO of the Paytm payments bank. Recently, Paytm also raised funding of $1.4 billion from SoftBank, and is now looking at raise another $1.6 billion in the next three to five years. The company is looking at bringing over half billion Indians onto its new platform. Also Read - How to find COVID-19 vaccine slot using Paytm app
But what changes will the new payments bank bring to new and existing users? Yes, the wallet is being transferred into new payments bank, and if users don’t want to continue, they can opt out of their wallet before May 23. To do this, users will need to send an email to firstname.lastname@example.org about the same. Paytm has clarified multiple questions in a detailed blog post on the site. Here’s everything you need to know about the new Paytm Payments Bank. ALSO READ: How to use Samsung Pay in India: Here s our complete guide on how it works, how to setup and transact
What is Paytm Payments Bank?
Paytm Payments Bank converts the digital wallet into an RBI-certified and licensed bank. All services like an account, interest on money in your account, debit cards and money transfers, are possible using the new Paytm Payments Bank.
Will I automatically get a Paytm Payments Bank account after the wallet transfer?
No, the Paytm wallet continues to be a wallet in the bank. You can transact digitally using the amount in the wallet. The amount will stay safe in the wallet, however, it will not accrue any interest unlike money in a bank account. In order to open an account, the user will have to complete multiple formalities and submit details. The bank account will be independent of the wallet. ALSO READ: Softbank s $1.4 billion funding could finally help Paytm shed its Chinese company image
What if I do not want to make the switch?
Making the switch is not optional and all accounts will automatically be transferred to the Payments Bank. However, if the user wishes to discontinue, the wallet will have to be closed. That can be done by sending an email to Paytm Helpdesk, email@example.com along with user bank account details like account number and IFSC code. The wallet will then be closed and any amount in the wallet will be transferred to the bank account specified by the user. ALSO READ: Softbank s $1.4 billion funding could finally help Paytm shed its Chinese company image
How to open a new Paytm Payments Bank Account?
In order to open a new Paytm Payments Bank Account, the user will have to submit e-KYC documents and once the bank account is open, the user can avail benefits like a virtual debit card, passbook, cheque book, and more.
Can money be transferred to other bank accounts?
Through the new Paytm Payments Bank, users can transfer money to any bank account. However, the same facility will not be available to wallet users.
What if I have not been a regular Paytm user?
For users who have not used their Paytm wallets for over six months or have zero balance in their wallets, Paytm will not switch the wallet to Payment Wallet. Such users will have to specifically give consent over app, web or email for the conversion.
“As per RBI guidelines, your Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank. Till now they were issued by One97 Communications Limited. This will happen automatically, and Paytm users do not need to do anything additional. Our customers will continue to use all the services provided by the Paytm Wallet, and enjoy all the benefits . Log in details, wallet balance and user experience will remain the same,” Paytm said in a blog post.
Besides these benefits, Paytm Payments Bank will also offer interest on the money available in your account.