Paytm Payment Bank : Paytm Licensed to Become Payment Bank: India’s leading digital wallet Paytm has now received the final licence from the Reserve Bank of India for its payments bank entity. With this, the road is now clear for the Noida-based payments player to kickstart its much-awaited payments bank operations next week.
Paytm Payments Bank Limited starts from May 23, 2017. As per the Central bank’s guidelines, the company will transfer its wallet business to the newly incorporated payments bank entity under a payments bank licence awarded to Founder and CEO Vijay Shekhar Sharma.
Customers using the payment wallet will see it move to the Paytm Payments Bank Limited in the same capacity and have the option of discontinuing their wallet services with due communication sent to the company by May 23.
Information For all the Paytm Users:
Q. What happens to my money in Paytm?
A. The money will be transferred to the Paytm Payments Bank Limited automatically as the wallet business will become part of the new company. Other banks too have their wallet businesses apart from their usual business.
Q. Is the Paytm app going to change?
A. No. You will continue to use it to pay for taxi, fuel, food, etc. the same way.
Q. What will change then?
A. The wallet business will get transferred to the new company but will keep running as it is.
Will I get a bank account number, cheque book , debit card, etc.?
For this you will have to open an account separately Otherwise, your wallet will keep working as it is. \You will earn interest on your money if you choose to open a payments bank account.
Q. How is a payments bank different from the usual bank?
A. A payments bank cannot lend or give advance to customers. A payment has the authority to issue cheque and debit cards only. There is a limit on the money you can keep in your account. Paytm payments bank has a limit of 1 lakh rupees. The purpose behind these banks is to provide quick and basic banking services to the people at the bottom. Airtel too is launching a payments bank.