Paytm Payments Bank becomes operational from today; 10 things you must know

Akanksha JainMay 23, 2017, 13:37 IST

Paytm Payments Bank has become operational from today onward and your current Paytm wallet has been moved to the payments bank.

Now, your Paytm wallet will operate under the Paytm Payments Bank and will continue to work in the manner as earlier and your login details will remain the same.

Vijay Shekhar Sharma’s Paytm Payments Bank got approval from the Reserve Bank of India (RBI) in January this year.

Payments banks is a new model of banks conceptualised by the RBI and can accept a restricted deposit, which is currently limited to Rs 1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards.

Under the Paytm Payments Bank, which is dubbed as India’s first bank with zero charges on online transactions, will have zero minimum balance requirement and issue free virtual debit card.

Paytm became a household name after demonetisation as many Indians moved to the digital wallet and made maximum transactions.

Now that the digital wallet has become a payments bank, here’s everything you should know

See Paytm Payments Bank becomes operational from today; 10 things you must know >>

1. Paytm Payments Bank:

Payments banks is a new model of banks conceptualised by the RBI and can accept a restricted deposit, which is currently limited to Rs 1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards.

2. Services offered under Paytm Payments Bank:

It is offering savings and current accounts with a debit card and the ability to make fast and easy payments. It will soon enable you to access a range of financial services such as Insurance, Loans, Mutual Funds offered by our partner banks with the seamless Paytm experience.

3. What happens to Paytm wallet:

Your current Paytm Wallet will now move to the Paytm Payments Bank Limited You continue to use the Paytm Wallet as before without any changes.

4. You can opt out:

Movement to Paytm Payments Bank is required by RBI for all Paytm Wallet customers. However, If you choose not to continue to enjoy the benefits of your Paytm Wallet, please email at care@paytmpaymentsbank.com

5. Invite-only:

Initially, Paytm Payments Bank is available on an invite-only basis. In the first phase, limited version of the banking app will be launched for employees and associates. You can request an invite by logging onto www.paytmpaymentsbank.com or through the Paytm app.

6. KYC:

Only KYC-enabled Paytm users are allowed to open a Paytm Payments Bank account

7. Interest on savings:

It is rolling out an annual interest of 4% for all savings accounts

8. Expansion plans:

Paytm Payments Bank will expand to 31 branches and 3,000 customer service points in the first year. It will also offer cashback of Rs 250 to customers depositing Rs 25,000.

9. Investments:

Paytm Payments Bank will get an investment of Rs 400 crore in the first two years. Vijay Shekhar Sharma and One97 Communications, Paytm’s parent company, have already invested Rs 220 crore in the payments bank.

10. Deposits:

Paytm Payments Bank claims deposits will only be invested in government bonds that are used for the development of the nation.

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