Your digital wallet Paytm is all set to launch its Payments Bank service on May 23. Paytm will merge it's wallet into Payments Bank from tomorrow. One97 Communications, the parent company of Paytm, received RBI's final nod for converting the digital payments business into a Payments Bank earlier this week. Renu Satti the current Executive and Vice President will be the CEO of Paytm Payments Bank.
Paytm has already started sending out messages to its present wallet holders informing them of the move.
What is Paytm Payments Bank?
Paytm Payments Bank converts the Paytm digital wallet into a RBI certified and licensed bank. Almost all services of a bank account like interest on money in your account, debit cards, and money transfers, are possible using the new Paytm Payments Bank.
What changes will the new payments bank bring to new and existing users? The wallet is being transferred into new payments bank. Your current Paytm Wallet will now move to the Paytm Payments Bank Limited. Customers will continue to enjoy the same experience of the wallet. To upgrade to the bank account, you will need to complete KYC and sign up. If the Paytm user doesn't want to continue, they can opt out of their wallet before May 23.
To earn interest, you will need to open a savings account with Paytm Payment bank. Paytm in their website said that they would be launching the option to open savings account soon.
You can not withdraw money from your wallet. Withdrawing money from the wallet is not allowed as per RBI policies. To get such use, we recommend that you open a savings or current account by completing your KYC and signing up. Current and Savings accounts will be coming soon.
Paytm also raised funding of $1.4 billion from SoftBank recently. The company is now looking at raise another $1.6 billion in the next three to five years. The company is looking at bringing over half billion Indians onto its new platform.