Paytm on Tuesday launched the Paytm Payments Bank in India, announcing the new unit via a public notice in newspapers and a blog post. After Vijay Shekhar Sharma secured an in-principle approval to start a payments bank in 2015, the Paytm bank was scheduled to commence operations around Diwali last year, but got delayed by several months. But with the Paytm Payments Bank finally operating, there are a few changes consumers would be introduced to, primarily the wallets business being transferred to the newly-incorporated entity Paytm Payments Bank Ltd (PPBL).
In case you’re a Paytm wallet user – and that number has grown a lot since November – and you’re wondering how this change will impact you, here is everything you need to know.
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All Paytm wallet accounts will automatically be migrated to the new Paytm Payments Bank. If you don’t want to continue with the bank, you have to opt out by emailing [email protected] or visiting paytm.com/care to opt out and redeem your balance by transferring it to your bank account.
Your account will remain a wallet account with PPBL, not a bank account. Accounts that have been inactive for six months, and have zero balance, will not be transferred to PPBL without opting-in. In addition to the wallet account, you will also be able to open a Paytm payments bank savings or current account. Although both will have the same login, you will need to open a bank account separately.
The Paytm Payments Bank accounts are being rolled out as a beta, for employees and associates. Other people can also request an invite to become account holders in the bank. These accounts have a limit of Rs. 1 lakh per customer, and are different from wallets because they can offer debit cards, and interest.
To get a Paytm Payments Bank account, you have to visit Paytm’s Bank page, and then click on Request an Invite. This will ask you to sign in to your Paytm account, and once you do that, automatically log your interest in becoming an account holder.
If you transfer more than Rs. 25,000 into your Paytm payments bank account, you will get a cash back of Rs. 250 (1 percent), up to four times.