The story was first published on 18 May. It has been updated after Paytm Payment bank went live in India on 23 May.
Paytm Payment bank is live for consumers in India. After a final go ahead by the Reserve Bank of India (RBI), the mobile wallet firm has diversified itself into a full-fledged digital bank.
The core mission of the service, according to Paytm is to cater to the requirements of the unserved and under-served communities of India, and bring them to the mainstream economy. Renu Satti is the CEO of Paytm Payments Bank.
Here is everything you need to know about Paytm Payments Bank.
What is Paytm Payments Bank?
Paytm Payments Bank is a separate service being offered by Paytm which will be integrated into the Paytm app, and you don’t need a separate app. Customers using the payment wallet will automatically move to the Paytm Payments Bank Ltd, with the same amount of money in their wallets, and have the option of discontinuing their wallet services by communicating the same before 23 May.
How Does it Work?
Once the service is launched, you will get an invite to open a separate Paytm Bank account. Anyone wishing to open an account will have to go through the mandatory know your customer (KYC) compliance. Proper documents such as Aadhaar and permanent account number (PAN) will be required to open the account. Paytm will also offer interest on the money in the bank, not the wallet.
Will Paytm Bank Operate Like Other Banks?
Don’t think of this as another bank, because it’s not. There are certain stipulations you must adhere to – for example, you cannot keep more than Rs 1 lakh in your account. All RBI rules relating to inoperative accounts and services like nominations, cheques/drafts, etc, will be applicable to Paytm’s bank. The Paytm bank will not offer any loans or issue credit cards to their customers.
What If You Don't Want to Continue with Paytm Bank?
You can follow these steps is you do not wish to continue with Paytm banks:
- Send a mail to help@paytm.com stating you don’t want to continue using Paytm.
- You will need to give details of your savings account, such account holder name, account number, IFSC code to redeem your Paytm balance.
- You will be asked to provide these details within 15 days of notifying them about your desire to opt out.
Other Things You Need to Look out for
If your Paytm wallet has been inactive for for the past 6 months or has zero balance, then it will be transferred to the Paytm bank, but only with your consent. Paytm hasn’t yet announced the interest it will be offering on deposits.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)