Paytm will soon be turning into a Payments Bank, as the digital wallet will pass through a transformation. The news came out couple of days back, as CEO Vijay Shekhar Sharma issued a public notice, announcing the launch of Paytm Payments Bank on 23rd May.
Paytm has been planning on the move for a long time now, but has been stuck in between RBI clearances and several licenses. RBI finally gave the approval to Paytm on 3rd Jan, and India’s largest Digital Wallet operator started its work on the move, with some major investments and allocations.
Finally, Paytm Payments Bank will start its operations from May 23rd, and if you are one of the 220 Million who use Paytm, here the things you need to know
What is Paytm Payments Bank Limited (PPBL)?
Till now Paytm used to operate under One97 Communications, the original owner of Paytm. Now Paytm has become Paytm Payments Bank Limited (PPBL), which will act as a Payments Bank, and from now you will get added facilities like interest on your money, virtual debit card, cheque book etc.
What will Happen to Paytm?
Nothing will happen to Paytm, as they will only turn into a Payments Bank from a Digital Wallet. They will remain the same, with some new added features.
What Will Happen to the Money in my Paytm Wallet now?
The money will stay as it is, only it’s ownership will get transferred on 23rd May from Paytm Wallet to Paytm Payments Bank.
Will Paytm Have a New APP now?
No, most probably it will be the same, but the structure of the app and features may get updated, so expect an app update in coming days.
But, no new app will be needed to use the Paytm Payments Bank.
Who Will open the Account?
Paytm itself will transfer the ownership of your account from the Paytm Wallet to the Paytm Payments Bank, where automatically your Paytm Payments Bank account will get initiated.
What if I Don’t Want to Open an Account?
In case you don’t want to open an account in the Paytm Payments Bank, you need to mail Paytm that you don’t want an account with Paytm Payments Bank, and they will discontinue your Wallet, and transfer your money to your bank account.
Can I use Paytm Wallet instead of Paytm Payments Bank?
No, that is not possible, as it is mandatory to switch to Paytm Payments Bank if you want to continue using Paytm services, or else Paytm Wallet cannot be used.
Who Will Not Get an Account?
Users who have an inactive account for more than 6 months, and has a Zero Balance, Paytm will not transform the Paytm Wallet into a Paytm Payments Bank account. In case if you want to activate it now, you can mail them, and they will initiate your account.
Will This be a Bank Account?
Not like the usual bank account. The Paytm Payments Bank is different, as it cannot lend or advance someone any money to anyone. Though cheque books and debit cards are there but not credit cards. The maximum amount that can be kept in the account is 1 Lakh.
Can Recharges, Bill Payments, Booking etc. be done on Paytm now?
Yes, all the existing activities of Paytm Wallet will be there, will the added benefits of Paytm Payments Bank account.
Can Money be Transferred to Other Banks?
Yes, like any other bank account, you can transfer money from Paytm Payments Bank account to other bank accounts.
What is Maximum Limit of Transaction in a Month?
1 Lakh, the maximum you can transact if you have your KYC registered, and only 20,000 if you don’t have the KYC registered.
Are the Transactions or the Transfers chargeable?
No such information has been passed from the part of Paytm till now.
Is it Compulsory to Open an Account?
Yes, if you want to continue with the existing Paytm services and want to use the Paytm Wallet, it is compulsory to have an account.
Will I get a Cheque Book, Debit Card and Other Features like Normal Bank?
Yes, you can get a Cheque Book, Virtual Debit Card but no Credit Card. Though you will get interest on your money.
Is Paytm Payments Bank same as Airtel Payments Bank?
Yes, but rates may differ. Airtel Payments Bank may have First Mover Advantage in India, but the platform ease and user base on Paytm make them the easy winner among the two.
How is Payments Bank different from Usual Bank?
Paytm Payments Bank cannot lend or advance any money to any customer like any normal bank and cannot issue a Credit Card too. The maximum amount transactive is only 1 Lakh. Though you will get interest on your Paytm account money. Payments Bank is to facilitate the basic banking services among masses, and nothing else.