Paytm starts payment banks, offers 4% interest: What is payments bank? What happens to Paytm e-wallet?

Your e-wallet is now your bank account. Leading digital wallet firm Paytm kick-started today the third payments bank of the nation after Airtel and Indian Post. Paytm is offering customers a 4 % interest rate, which is the lowest among the three. Airtel offers 7.3 per cent interest and India Post about 5.5 per cent annually.

This means that Paytm users can now get almost every banking service that a conventional bank offers with their e-wallets. Many Paytm users, however, are not completely familiar with payment banks. The e-commerce site provides a detailed explainer on what Payment Banks mean and what Paytm users should do. Here's the full text:

ALSO READ: Paytm launches payments bank, to offer cashbacks on deposits

What is a Payments Bank?

Payments Bank is a new type of bank, licenced by the Reserve Bank of India. As a Payments Bank, Paytm can now accept customer deposits upto Rs. 1 lakh per customer in a wallet, savings or current account and offer other banking services like Debit Cards, Online Banking and Mobile Banking.

How is a Payments Bank different from a normal bank?

Payments Banks are not allowed to lend to customers. However, they can partner with other financial institutions/banks to offer financial products like loans, insurance, mutual funds, pension funds etc.

What are the services offered by Paytm Payments Bank?

Paytm Payments Bank will continue to offer paytm wallet. In addition, current accounts for businesses and interest bearing savings accounts for individuals will be offered by bank. It will also enable you to access a range of financial services such as insurance, loans, Mutual Funds offered by our partners with the seamless Paytm experience.

How can I open a Paytm Payments Bank account?

We will be launching our banking servies soon. You will have an option to open bank account and access a range of other financial services by completing your KYC and signing up digitally.

MOVEMENT TO PAYTM PAYMENTS BANK

What happens to my existing Wallet?

Your current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity i.e. KYC wallet as KYC wallet and minimum detail-KYC wallet as minimum detail-KYC wallet. If we do not receive any communication against the same before December 21, 2016 your wallet will move as a part of the migration, but you will continue to enjoy the same experience of the wallet. To upgrade to bank account, you will need to complete KYC and sign up.

However, if you have not used your wallet in last 6 months and have zero balance in your wallet, you will be required to consent to the migration through login to your wallet before the migration date to move to Paytm Payments Bank.

Can I choose not to move to Paytm Payments Bank?

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 the Paytm Wallet, please email us at care@paytm.com and we will let you know the process to transfer your wallet money to your bank account.

Alternatively, you can raise your request either through Paytm app or through website by following these steps -

Through App -

1. Go to Profile section

2. Select 'Contact Us' on IOS devices & 'Help & Support' on Android devices

3. Choose the option - Paytm Payments Bank

4. Select your issue category as - Know about Paytm Payments Bank

5. Select your issue as - Opt out of movement to Paytm Payments Bank

6. Press on submit to send us the query.

Through Web -

1. Go to https://paytm.com/care/ticket

2. You will see a screen saying 'Help us understand your concern'. Select 'Paytm Payments Bank' from the drop down menu.

3. Please specify your problem by choosing - Know about Paytm Payments Bank

4. Select your issue as - Opt out of movement to Paytm Payments Bank

5. Press submit your query to send us your request

Please note, if you chose not to migrate to Paytm Payments Bank, your wallet will be closed. You will not be able to make payments using Paytm Wallet.

Will my wallet balance now earn interest?

To earn interest, you will need to open a savings account. We will be launching the option to open savings account soon.

I'm a Paytm O2O point Paytm partner, what does this mean for me?

Your wallet continues to work the same way as before. There is no impact on your cashflows or the mode of accepting payment. We recommend that you complete your KYC, so that you can ejoy banking faclities with us soon.

Will my old login details work?

Yes, your Paytm login details continue to remain the same.

I am expecting refund on a payment I made from my Paytm Wallet, what happens to the refund now?

Your refunds will be given back to your wallet as earlier.

Can I still use credit card to add money to my wallet?

Your Paytm Wallet continues to work the same way as before. You can continue to use credit card or any other options as available today to add money to your wallet.

Can I now withdraw money from my wallet?No, withdrawing money from wallet is not allowed as per RBI policies. If you envisage such use, we recommend that you open a savings or current account by completing your KYC and signing up. Current and Savings acocunts will be coming soon.

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