Decoded: Transferring Money From E-Wallets to Bank Accounts

Here’s a primer on how e-wallet to bank transfers work for customer and merchants.

With cash becoming hard to come by after the demonetisation announcement, many are opting for e-wallet services.

This has been hastened by an ad blitz by mobile wallets like Paytm, Freecharge and MobiKwik, among others, and a slew of benefits announced by the Reserve Bank of India (RBI).

E-Wallet Balance Limit set by RBI

For consumers: Up to Rs 20,000
For merchants: Up to Rs 20,000

The RBI has permitted merchants to transfer up to Rs 50,000 per month to their bank accounts, without any limit per transaction. This will be applicable till the end of 2016. 

Here’s a look at how different e-wallet brands are allowing wallet-to-bank transfers, and if there are any additional charges to be paid.

Paytm

Paytm is perhaps the best-known e-wallet firm right now. The Vijay Shekhar Sharma-owned company is also on the verge of setting up its Paytm Payments Bank, expected to become operational in the coming weeks.

The company also allows users to transfer money from their Paytm wallets to their bank accounts.

To use the bank account transfer facility, a user has to be mobile or e-mail verified and must be registered on the system for over 45 days. The balance in the Paytm wallet must be a minimum of Rs 2,000 and the transaction amount must exceed Rs 1,000. The daily upper limit for wallet-to-bank account transactions is Rs 5,000 and the monthly limit is Rs 25,000.

Paytm

Any Transfer Fees?

Currently, all money transfers from the Paytm wallet to any bank account cost 0 percent for all users. Once we launch Paytm Payments Bank, we will ALWAYS allow you to transfer money from your Paytm wallet to your Paytm Payments Bank Account at 0 percent fee even after 31 December 2016.

Paytm

Merchants/sellers can transfer up to Rs 50,000 to their bank accounts from their e-wallets. The limit can be extended to Rs 1 lakh if the seller has undergone the Know Your Customer (KYC) process.

MobiKwik

If Paytm doesn’t fulfil your requirements, you can opt for MobiKwik. However, unlike Paytm, there are fewer options available to consumers/merchants.

Any Transfer Fees?

MobiKwik does not charge any transaction fees for money transfers from your e-wallet to your bank account.

As with Paytm, if you’re a shopkeeper, the limit goes up to Rs 50,000. And by undergoing your e-KYC, this limit then stretches up to Rs 1 lakh.

Freecharge

Going by what we’ve read, it seems Freecharge is the e-wallet brand that needs to simplify its process soon. Consumers are allowed to transfer up to Rs. 5,000 from their Freecharge wallet to their bank account.

Any Transfer Fees?

Freecharge is also not charging any transaction fees for money transferred from wallets to banks, up to 31 December 2016 for now.

The maximum limit for wallet-to-bank account transfers every month is also Rs 25,000. So, make sure you plan out the transfer accordingly.