Paytm has today unveiled its Payments Bank with features such as four percent interest, no minimum account maintenance charges and more.
With the new banking system, the existing wallets will be transferred to Paytm Payments Bank, but the accounts will remain as two separate entities. To avail the benefits of payments bank, new and existing Paytm customers will have to get an e-KYC done with Aadhaar linking and biometrics authentication.
Besides Airtel Payments Bank and India Post Payments Bank, Paytm will also be competing with Digibank by DBS, which offers similar services to its customers.
Highlights:
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.
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2. 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.
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3. An individual’s current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity. 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.
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4. In case a user’s passbook shows older transactions being from wallet under One97, these are the transactions made before wallet moved to the Paytm Payments Bank.
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5. The wallet will now operate under the Paytm Payments Bank and continue to exist and function in the same manner as earlier.
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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.
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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.
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8. The Paytm login details continue to remain the same.
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9. Withdrawing money from wallet is not allowed as per RBI policies.
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10. This is just a transfer of ownership of the Paytm Wallet to a new company called Paytm Payments Bank Ltd.
