Paytm on Tuesday became the third entity after Airtel and India Post to launch the Payment Bank in India. The bank claims to be India’s first bank with zero charges on online transactions, no minimum balance requirement and free virtual debit card. For saving accounts, the payment bank will offer annual interest of 4 per cent and will also be setting up up KYC centers across India to help customers get KYC done. KYC is a mandatory eligibility requirement for a Payments Bank account.
The company while announcing the launch said that the Paytm Payments Bank will be initially available on an invite-only basis. It said in a blog post, “The Paytm Payments Bank will bring a new banking model to the world where an account holder’s money will be absolutely safe. Deposits will only be invested in government bonds that are used for the development of our nation.”
In the first phase, the company will roll out the limited version of the banking app for its employees and associates. A request for an invite can be made by logging onto payment bank website or through the Paytm app.
In a blog post, Paytm has revealed everything one needs to know about its payment bank and more
1. Paytm Payments Bank can accept customer deposits upto Rs. 1 lakh per customer in a savings or current account and offer other banking services like Debit Cards, Online Banking and Mobile Banking. However, it cannot offer financial products of their own, but partner with other banks.
2. Paytm Payments Bank is offering savings and current accounts with a debit card and the ability to make fast and easy payments. It will also help in accessing a range of financial services such as insurance, loans, mutual funds offered by our partner banks with the seamless Paytm experience.
3. An individual’s current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity i.e. KYC wallet as KYC wallet and minimum KYC wallet as minimum KYC wallet. One can continue to use the Paytm Wallet as before without any changes. However, if you have not used your wallet in the last 6 months and you have zero balance, you will be required to login to your wallet again to move to the Paytm Payments Bank.
4. In case a user’s passbook shows older transactions being from wallet under One97, it means that since Paytm Wallet has moved from One97 Communications Ltd. to Paytm Payments Bank Limited as per the RBI directive. The transactions under ‘wallet issued by One97 Communications Ltd.’ are the transactions made before wallet moved to the Paytm Payments Bank.
5. The wallet will now operate under the Paytm Payments Bank and continue to exist and function in the same manner as earlier. In addition to a wallet, one will be able to open a savings or current account with payment bank and access a wide range of financial services.
6. If one doesn’t want to migrate to Paytm Payments Bank, then the wallet will be closed, disabling payments using your Paytm Wallet. Thus, it is a mandatory requirement for movement to Paytm Payments Bank for all Paytm Wallet customers.
7. The Paytm wallet continues to work the same way as before and there will be no impact on your cash flows or the mode of accepting payment. The refunds will come back to the wallet as earlier. It is not mandatory to open an account with Paytm Payments Bank to use the wallet.
8. The Paytm login details continue to remain the same.
9. Withdrawing money from wallet is not allowed as per RBI policies.
10. This is just a transfer of ownership of the Paytm Wallet to a new company called Paytm Payments Bank Ltd. One will now be given an option to open a separate bank account with the payment bank. One can send money to any bank account from your Paytm Payment Bank Wallet.