One of India’s leading digital mobile wallet provider Paytm is on the verge of launching its Payments Bank service. The company is currently in the process of obtaining the final nod from the Reserve Bank of India (RBI) for its payments bank. As part of the preparation, One97 Communications, the parent company that owns Paytm will merge its wallet business to the newly incorporated Paytm Payments Bank Limited (PPBL) once it get required approvals from RBI.
Last year, RBI had awarded “In-principle Payments Bank license” to founder and CEO of One97 Communications, Vijay Shekhar Sharma and to ten other entities. As per regulatory requirements, Vijay Shekhar Sharma will own the majority share in Paytm Payments Bank Limited.
Here is the excerpt from the Paytm public notice on its Payments bank –
- Your current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity. That’s KYC verified Wallet will remain KYC verified account and minimum details KYC Wallet as minimum details KYC Wallet. However, for any reason you do not wish the change to happen, then you can write to Paytm before 21st December 2016.
- If you want to close Paytm Wallet, you need to email the company at [email protected] or log in to paytm.com to notify your choice of opting out. The balance money in your account can be transferred to your bank account. For that, you may need to share your account number, account holder name and the IFSC code of the bank where you wish to redeem the balance within 15 days of notifying your opting out choice. If you fail to share the bank account details, the Wallet money will be kept in a specially designated account with Paytm Payments Bank Limited. Which you can’t use until you submit bank details and transfer it to your own bank account.
- If your Paytm Wallet has been inactive for the last six months and has zero balance, it will not get transferred to the Paytm Payments Bank Limited unless you give specific consent for the same while logging into the Paytm app or on the web or by email.
- Paytm Wallet will keep working with all bank accounts and cards as it does today. There will be no obligation to get a bank account with Paytm Payments Bank.
- Zero percent transfer charges when transferring money from Paytm Wallet and Paytm Payments Bank to your bank account.
- Paytm Payments Bank will be powered by IndiaStack which is a set of open APIs and Aadhar.
- Paytm Payments Bank will support NEFT, RTGS, UPI-based transaction. Also, every bank account holder will get a card for doing any transactions.
Earlier India’s biggest telecom operator Airtel has launched its own payments bank service called Airtel Payments Bank. The operator merged its wallet service called Airtel Money to its Payments bank. The operator also started offering promotional offers like free talk time for the money deposited on saving accounts.