Paytm launched its payment bank in India on Tuesday. The company gave this information by issuing a public notice in newspapers and in their blog post. The Paytm Payments Bank has delayed several months. But according to the notice, the Wallet business of Paytm has been transferred to the company’s new product, Paytm Payment Bank Limited (PPBL). Paytm had planned to introduce Paytm Payment Bank around Diwali last year.
In 2015, the RBI had allowed 10 other people, including the founder Vijay Shekhar Sharma, to create a payment bank. But apart from Paytm, only Airtel’s payment bank is running.
If you are also a Paytm Wallet user, and the number of people using Paytm Wallet since November has increased rapidly.
If you are also thinking about how this change will affect you, then learn all about it here.
- All Paytm wallet accounts will be automatically migrated to the new payment bank. If you do not want to be migrated to the bank, you will need to email email@example.com or go to paytm.com/care and opt out. And then you have to transfer the remaining balance to your bank account to redeem.
- Your account with Paytm Payments Bank Limited (PPBL) will remain a wallet, not a bank account. The accounts which are not active for the last six months and those with Zero balance, will not be transferred to PPBL without an OPTION-in. In addition to the Wallet Account, the user will also be able to open aPaytm Payment Bank Savings or Current Account. However, both of them will have the same login, but you will need to open a separate bank account.
- Paytm Payments Bank is currently in beta phase and it is being released to employees and partners. Apart from this, other people can also send inquiries of an invoice to become account holder in the bank. The limit of these accounts is one lakh rupees per customer. And it’s different from wallet because it offers debit cards and interest.
- For a Paytm Payments Bank account, you have to go to the Paytm bank page and then click on ‘Request an Invoke’. After this, you will be asked to sign in your Paytm account. Once this is done, your interest will be accepted to become an account holder.
- If you transfer more than Rs 25,000 in your Paytm payment bank, you will get a cashback of Rs 250 (one percent) maximum four times.
- There is no limit to keeping the minimum balance in the bank account. Apart from this, there will be no fee for online transactions (like IMPS, NEFT, RTGS).
- The biggest difference between a wallet and a payment bank is the interest offered by the payment bank. Paytm Bank will pay annual interest of 4 percent. It is less than 7.5 percent interest rate offered by Airtel Payment Bank. Apart from this, Axis, ICICI also offer similar interest.
- In addition, apart from Wallet, payment bank debit cards (not a credit card) also offer. According to to Paytm’s website, Paytm Payment Bank will also provide a check book, demand draft and debit card for a very low fee. Interestingly, Airtel is not offering any physical debit card, but a virtual card is available online.
- The Paytm Bank will issue a Rupee Debit Card, which will be free. But it will have to pay 100 rupees + annual charge as an annual charge. Apart from this, the card will also have to pay 100 rupees + delivery fee. The price of a checkbook with 10 checks will be equal to 100 rupees + delivery fee.
- Paytm is not starting its ATM. However, non-metro ATMs can be used up to five times without paying any debit card, and three times in Metro ATM. After this, every time the cash withdrawal will be charged, Rs 20 will be charged, whereas, for other transactions like checking the balance, a fee of Rs 5 will be charged.