On Tuesday, Paytm has launched payment bank in India. The company has issued a public notice via newspaper and blog post introducing its new unit. It has appointed Renu Satti as the CEO of this new venture. She will also be the board member of the Paytm Payment Bank. However, the founder and CEO Vijay Sharma will be the non-executive chairman.
Many of us are confused regarding how the new entity is going to differ from the Wallet account and what is going to happen to the money that has been deposited in the wallet account. We’ll brief everything in short that you need to know about new Paytm Payment Bank.
The company will automatically migrate the wallet account to new payment bank. In case you do not want to continue with the new bank account, you can drop an email at firstname.lastname@example.org to opt out. Alternatively, you can visit Paytm.com/care in order to opt out and get your balance back to your bank account.
Opening account with Paytm Payment Bank
Since it’s a beta roll out so opening a Paytm Payment Bank account is limited to Paytm Employees and associates. However, Paytm users can request an invite in order to become an account holder. Users can visit the home page of Paytm Bank and click on ‘Request an Invite’. It will further ask to log in to your Paytm account. Once you will login successfully, it will log your interest to become an account holder.
Features of Paytm bank and how it differs from wallet
Paytm bank is different from wallet as it will provide you almost all banking services. You can opt for debit cards and you will get interest on your deposit. Main features of Paytm Bank are as below.
Cashback offer– The bank will provide 1% cash back if you are transferring more than 25,000 into your Paytm Payment Bank account. As of now, these accounts have a limit of Rs. one lakh per customer.
Interest rate– The bank will give you 4% interest rate. This is the major difference in wallet account and Paytm Bank account.
Zero balance and no charges on online transactions– You can open the account with zero balance. There is no minimum balance criterion. Bank will not charge on online transactions like NEFT, RTGS and IMPS.
Only debit cards, not credit cards– The bank will provide only debit card facility. Facilities like debit card, checkbook and demand draft are available with very nominal cost.
ATM transactions– Paytm Bank will not bring in its own ATMs. You can use its debit cards in other ATMs to withdraw the money. In a non-metro city, 5 transactions are made free of cost and for metros, the number is only three. After that, Rs. 20 will be charged per transaction.