The parent firm of digital payments major Paytm, One97 Communications, is moving its wallet commerce to Paytm Payments Bank. According to the guidelines of Reserve Bank of India, the firm will move its wallet commerce to the recently-incorporated payments bank unit beneath a license awarded for payments bank. Wonder what it is for you as a customer of Paytm? Let us have a look
All Paytm wallet accounts to be involuntarily transferred to the payments bank
The money in your account of the Paytm app will be migrated to the Paytm Payments Bank Limited involuntarily, as the wallet commerce will now turn into a fraction of the new firm. Those who do not wish to persist can take a back seat by visiting paytm.com/care or dropping an email to firstname.lastname@example.org.
The wallet accounts will not become bank accounts
Users’ money in the Paytm wallet will be involuntarily migrated to Paytm Payments Bank. However, it will stay as a wallet account except the users select otherwise. Users will require to open account for the Paytm Payment Bank independently.
Paytm account holders Will get cheque book and debit card, but no credit cards
Paytm account holders will obtain a debit card and cheque book similar to what they get from any normal bank. However, there is no option for credit card since payment banks are not permitted to provide the facility of lending.
To offer 4% interest on deposits
Paytm Payment Bank will provide 4% of interest rate on deposits. To get the preliminary bunch of users on the ship, Paytm will offer cash backs to the first 1 Million users. The bank will also provide cash back of Rs 250 to users placing Rs 25,000 in the Paytm Payment Bank.
Inactive accounts will not be transferred
Paytm wallet accounts that have zero balance and have been dormant for six months will not be migrated. These customers need to select whether they want their accounts to be transferred or not.
Zero balance accounts
The bank accounts will be zero-balance in nature. This indicates that there will be no requirement of minimum balance. The firm also stated that all online transactions such as NEFT, IMPS, and RTGS will not acquire any charges.