Everything you need to know about Paytm Payments Bank

Following a huge success thanks to the demonetization in India, Paytm today announced the launch of Paytm Payments Bank. According to the company, the Paytm Payments Bank is the first to offer zero charges on online transactions, no minimum balance requirement and free virtual debit card.

Unlike traditional banks, Paytm has a new banking model where an account holder’s money will be safe and deposits will only be invested in government bonds. The Paytm Payments Bank will be initially available on an invite-only basis and the limited version of the banking app will be rolled out to employees and associates.

One can request for an invite by logging onto www.paytmpaymentsbank.com or through the Paytm app.

According to a blog post, Paytm is also setting up KYC centers across India to make themselves eligible for a Payments Bank account. The company has confirmed that it will offer an annual interest of 4 percent for all savings accounts and merchant partners will have access to current bank accounts.

To give a clarity to consumers, merchants and other interested organisations, here are some of the core features of the Paytm Payments Bank.

-Payments Bank is a new bank model visualised by the Reserve Bank of India. As a Payments Bank, Paytm can now 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. Payments Banks can not offer financial products of their own, but partner with other banks.

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

-Currently Paytm is inviting limited users to open an account. One can request for an invite using paytmpaymentsbank.com or the latest Paytm app.

-Current Paytm Wallet will be moved to the Paytm Payments Bank Limited in the same capacity i.e. KYC wallet as KYC wallet and minimum KYC wallet as minimum KYC wallet. Users can continue to use the Paytm Wallet as before without any changes. However, if a user has not used their wallet in the last 6 months and have zero balance, they will be required to login to their wallet again to move to the Paytm Payments Bank.

-The Paytm Wallet will be moved from One97 Communications Ltd. to Paytm Payments Bank Limited as per the directions of RBI. The transactions seen under ‘wallet issued by One97 Communications Ltd.’ are the transactions made by users before their wallet moved to the Paytm Payments Bank.

-The Paytm wallet will operate under the Paytm Payments Bank and continue to exist and function in the same manner as earlier. In addition to a wallet, users will now be able to open a savings or current account with to access a wide range of financial services.

- Movement to Paytm Payments Bank is required by RBI for all Paytm Wallet customers. However, if a user chooses not to continue they can write an email to care@paytmpaymentsbank.com. Users who do not migrate to Paytm Payments Bank will end up closing their wallets and unable to make payments using Paytm Wallet.

-Only KYC-enabled Paytm users will be allowed to open a Paytm Payments Bank account. The KYC process can be done by visiting one of the centers listed here or by clicking here to book an appointment.

Published Date: May 23, 2017 19:14 PM | Updated Date: May 23, 2017 19:14 PM