Paytm, the largest digital wallet in India is now starting its own banking payment system i.e. Paytm Payments Bank. Paytm has got the nod from RBI and will go official from 23rd May. Renu Satti will be the CEO of Paytm Payments Bank.

Few important notes:

• Paytm payment bank will start from 23rd may
• It will work on the old Paytm app. No new app is required
• Every Paytm user will get an invite to open a Paytm Payments Account.
• Users will need documents like Aadhaar and Pan Card in order to open the account.
• The limit of the account is set up at Rs 1 lakh.
• No credit cards and loans will be offered by the bank.
• But cheques, drafts and nominations will surely be available.
• One can choose not to activate the Paytm Bank Account and still be a regular Paytm user.

If you’re a Paytm user and worried about this change, here are the things you need to know:

1. What is Paytm bank?

Payments Bank is a new type of bank, licensed 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.

2. 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.

3. 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 their partners with the seamless Paytm experience.

4. How can you open a Paytm Payments Bank account?

Paytm will be launching its banking services soon. You will have an option to open bank account and access a range of other financial services by completing your KYC (Know your customer) and signing up digitally.

5. What happens to your 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. 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.

6. Can you use Paytm Wallet instead of Paytm Payments Bank?

No, that is not possible, as it is mandatory to switch to Paytm Payments Bank if you want to continue using Paytm services, or else Paytm Wallet cannot be used.

7. Can you 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 Paytm at [email protected] and Paytm will let you know the process to transfer your wallet money to your bank account.

Please note that 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.

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