Updated at September 1, 2017:
Paytm Payments Bank is now live. It can be opened from the latest version of Paytm app. KYC verified Paytm account holders can open the savings account within few minutes. Non-KYC accounts have submit KYC details, savings account will be opened post verification by a Paytm representative.
Our original story from Tuesday, February 6, 2018, follows:
After months of speculations and delays, Payments Bank Service by Paytm is finally live starting 23rd May 2017. Currently, the banking feature is available on an invite-only basis. Paytm Payments Bank will be India’s first bank to offer cashbacks on deposits and more features like zero fee on online transactions and no minimum balance.
You can deposit a maximum of Rs 1 lakh to Paytm Payments Bank. For the deposited money, you will get an interest of 4 percent per annum, paid monthly. Further, safeguarding your money Paytm will use the deposited money from its account holders to invest only in government bonds that are used for the development of our nation.
For those new to Payments Bank, the Reserve Bank of India (RBI) back in 2015 granted Payments Bank license to eleven entities including Paytm. Payments Bank operate as a differentiated bank and can accept demand deposits, remittance services, internet banking and other specified services. But it can’t provide money lending services like loans. The main purpose of this type banks is to serve certain niche interests, remittance needs of small businesses, unorganised sector, low-income households, farmers etc.
With Paytm Payments Bank, you can also access a range of financial services such as Insurance, Loans and Mutual Funds offered by partner banks. You will be able to send money and receive money from any bank account from your Paytm Payment Bank account.
How to Open an account?
To get started with the Paytm Payments Bank, visit paytm.com/bank or download the latest Paytm app to request an invite. Paytm allows only KYC-verified users to open the savings account and has set up several KYC centres for the same. Consequently, existing Paytm Wallet will be migrated to Payments Bank with KYC or minimum-KYC in the same capacity. In addition, this new banking model by Paytm invests the deposits from users in government bonds.
- Currently, Paytm Payments Bank is available on an invite-only basis.
- Visit paytm.com/bank request for an invite (or)
- Upgrade to the latest Paytm app to request an invite. (or)
- Update: Visit paytm.com/bank for more details.
A Paytm Payments Bank banking app is currently under development and the beta version is being rolled out soon to the employees and associates. The mobile app will be available for both Android and iOS devices when launches.
Savings and Current Account Features
You can open a savings account with Paytm Payments Bank following KYC verification. Paytm Payments Bank offers an annual interest of 4 percent for all savings accounts. Current account features are available to merchant partners. Cash withdrawal is possible from the savings or current account with Rupay debit cards or virtual debit card. Refer the table for more details.
- Earn an annual interest of 4 percent per annum.
- Zero minimum balance requirement.
- Zero fees for IMPS, NEFT and RTGS transactions.
- Free virtual debit card.
- Physical services like a chequebook, demand draft and debit card with nominal fees.
| Benefits | Fees/Charges (Rs) |
|---|---|
| Minimum account balance | Nil |
| Interest rate | 4 percent per year (payable monthly) |
| Online fund transfer | |
| To another Paytm Payments Bank account or Paytm Wallet | Free Unlimited |
| IMPS | Free Unlimited |
| UPI | Free Unlimited |
| NEFT | Free Unlimited |
| Debit card and cheque book | |
| Rupay Debit card | Free |
| Annual subscription for physical Rupay Debit card | Rs 100 + delivery charges |
| Lost card replacement | Rs 100 + delivery charges |
| Cheque book (10 leaves) | Rs 100 + delivery charges |
| ATM transactions | |
| Non-metro locations | 5 transactions free every month. Post that Rs 20 per transaction for Cash withdrawal and Rs 5 per transaction for Balance check and mini statement. |
| Metro location | 3 transactions free every month. Post that Rs 20 per transaction for Cash withdrawal and Rs 5 per transaction for Balance check and mini statement. |
| Statement and Certificates | |
| Online passbook | Free |
| Emal statements | Free Unlimited |
| Physical statements/certificates | Rs 50 + delivery charges. Free for women, senior citizens and Armed forces personnel. |
Opting out from Paytm Payments Bank
It is not mandatory to have a Paytm Payments Bank account to use the Paytm Wallet features. However, the migration handles the wallet ownership to Paytm Payments Bank Ltd and customers are given an option to open a separate bank account. The movement of all existing wallet users to the new entity (Paytm payments bank) is made mandatory by RBI. If you wish not to continue to enjoy the benefits of Paytm Wallet, write to [email protected]. Wallets of users who opt out from migration to Paytm Payments Bank will be closed and they will not be able to make payments using Paytm Wallet.
Post-migration the wallet will function as normal like modes of payment, cash flows and refunds. You will see all your previous transactions under “wallet issued by One97 Communications Ltd“. However, withdrawing money from the wallet is no more possible as per RBI policies. So, are going to opt-in for the migration? If so, are you opening a separate bank account or continue to use the wallet feature alone? Peace!