Paytm has been planning to launch its Payments Bank for so long now, and the company even integrated UPI on its platform for the same. Because of some hurdles, Paytm was unable to officially start operations of its payments bank.
Now, Paytm has today released a public notice that states that Paytm Payments Bank will be starting operations officially on May 23, which is only six days from now. Vijay Shekhar Sharma, in a Facebook post, released a photo of the public notice which was published in newspapers today.
Paytm has received the license from RBI to launch payments bank by CEO Vijay Shekhar Sharma. As per the regulations from RBI, the company will be transferring its wallet business to the newly incorporated Payments Bank entity, Paytm Payments Bank Limited.
How Does this Move Affect You?
Your current Paytm wallet will now move to the Paytm Payments Bank Limited in the same capacity. So, if you still want to increase the amount you want to store in the payments bank, you need to get KYC done for your account.
With the payments bank, the account will be able to accept deposits from individuals and small businesses of up to Rs 1 lakh per account. This will also give customers the ability to earn interest on the amount stores in this payments bank account.
If you choose to not opt for the payments bank, you will have to discontinue your Paytm Wallet, for which the customer has to send an email to [email protected] or log in to paytm.com/care to notify the reason for opting out. The balance in the account will be transferred to your choice of a bank account.
After demonetization in 2016, Paytm emerged as the leading digital wallet operator, and it gained a lot of customers in the time frame. Launching a payments bank will now allow Paytm to improve its digital footprint, and provide a lot of payments access to its customers.
If you already have a Paytm wallet, you will be automatically transferred to PPBL on May 23, post which you will be able to use the money stored in your account to make payments and make transactions to other bank accounts. It does not make sense to discontinue your wallet unless you have had a bad experience with Paytm because you’ll also be earning interest on the money stored in this account.
