In 2015, RBI allowed 10 others, including Paytm founder Vijay Shekhar Sharma, to set up a payments bank. But till now apart from Paytm, only Airtel payment banks are running.
If you are also a Paytm Wallet user, and from November till now the number of Paytm Wallet users has increased rapidly. If you are also wondering how this change will affect you, then know everything about it here.
- All Paytm Wallet accounts will be automatically migrated to the new payment bank. If you do not want to migrate to the bank then you have to email firstname.lastname@example.org or paytm.com/care Go to and choose the option of opt out. And then the remaining balance has to be transferred to your bank account to be redeemed.
- Your account with Paytm Payments Bank Limited (PPBL) will remain a wallet and not a bank account. Accounts which are not active for the last six months and have zero balance will not be transferred to PPBL without opting-in. Apart from the wallet account, users 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 separate bank account.
- Paytm Payments Bank is currently in beta phase and is being rolled out to employees and partners. Apart from this, other people can also send an invite request to become an account holder in the bank. The limit for these accounts is Rs 1 lakh per customer. And it is different from wallet as it offers debit card and interest.
- For a Paytm Payments Bank account, you need paytm bank page and then click on ‘Request an Invite’. After this you will be asked to sign in to your Paytm account. Once this is done your interest to become an account holder will be accepted.
- If you transfer more than Rs 25,000 in your Paytm Payments Bank, you will get a cashback of Rs 250 (one percent) maximum four times.
- There is no limit on the minimum balance to be maintained in the bank account. Apart from this, there will be no fee for online transactions (such as IMPS, NEFT, RTGS).
- The biggest difference between a wallet and a payments bank is the interest offered by the payments bank. Paytm Bank will pay an interest of 4 percent per annum. It is offered by Airtel Payment Bank. 7.5 percent interest rate is lower. Apart from this, Axis, ICICI also offer similar interest.
- Also, apart from wallets, payment banks also offer debit cards (not credit cards). According to Paytm’s website, Paytm Payments Bank will also provide a checkbook, demand draft and debit card for a very small fee. Interestingly, Airtel is not offering any physical debit card, but a virtual card is available online.
- Paytm Bank will issue a RuPay Debit Card, which will be free of cost. But for this, a delivery charge will have to be paid as Rs 100 + annual fee. Apart from this, even if the card is lost, you will have to pay Rs 100 + delivery charges. A checkbook containing 10 checks will also cost the same as Rs 100 + delivery charges.
- Paytm is not launching its ATM. However, its debit card can be used up to five times at non-metro ATMs, and three times at metro ATMs without paying any charges. After this, every time cash withdrawal will be charged Rs 20, while for other transactions like checking balance, Rs 5 will be charged.
Paytm’s parent company One97 has invested in Gadgets 360.