Paytm has launched the Paytm Payments Bank in India, announcing the new unit via a public notice in newspapers and a blog post. Renu Satti has been appointed the CEO of the new entity, and also sits on the payments bank's board; Paytm CEO Vijay Shekhar Sharma is the non-executive chairman. With the Paytm Payments Bank finally operational, there are a few changes consumers would be introduced to, primarily the wallets business being transferred to the newly-incorporated entity Paytm Payments Bank Ltd (PPBL).
There seems to be some confusion around the Paytm payments bank, how it differs from the Paytm Wallet account, and what happens to the money in users' wallets. Here's everything you need to know about the new Paytm bank, how to open an account, and what you get by signing up.
All Paytm wallet accounts will automatically be migrated to the new Paytm Payments Bank. If you don't want to continue with the bank, you have to opt out by emailing firstname.lastname@example.org or visiting paytm.com/care to opt out and redeem your balance by transferring it to your bank account.
Your account will remain a wallet account with PPBL, not a bank account. Accounts that have been inactive for six months, and have zero balance, will not be transferred to PPBL without opting-in. In addition to the wallet account, you will also be able to open a Paytm payments bank savings or current account. Although both will have the same login, you will need to open a bank account separately.
Opening a Paytm Payments Bank account is an option only for Paytm employees and associates as it is being rolled out as a beta. Paytm users can also request an invite to become account holders in the payments bank. These accounts have a limit of Rs. 1 lakh per customer, and are different from wallets because they can offer debit cards, and interest.
To get a Paytm Payments Bank account, you have to visit Paytm's Bank page, and then click on Request an Invite. This will ask you to sign in to your Paytm account, and once you do that, automatically log your interest in becoming an account holder.
Sharma had secured an in-principle approval to start a payments bank in 2015, the Paytm bank was scheduled to commence operations around Diwali last year, but got delayed by several months. Notably, Paytm Payments Bank is not the only one of its type, or even the first, as the RBI had awarded the approval to set up payments bank to 10 others as well. So far, Airtel has gotten its payments bank running, with Paytm following suit now.
Disclosure: Paytm's parent company One97 is an investor in NDTV's Gadgets 360.