|Paytm Payment Bank is here|
Post demonetization, there has been a sudden increase in the business of Paytm. Today Paytm has taken a step further in their business by opening a Paytm Payments bank with a public notice in all the leading newspapers and a blog post which Paytm published on their site explaining the Payments bank concept.
First of all look at the public notice issued by Paytm in today's newspapers.
|Paytm Announcement in today;s newspapers. Image: Paytm Blog|
In case you ae wondering what a payments bank means, here's our explanation to you.
Payments bank are a new model of banking system conceptualised by RBI. Payments banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer These Payment bank can issue debit cards but they cannot issue credit cards or loans to the customer. Earlier Airtel has launched India's first Payment Bank. Read more about payment bank on Wikipedia.
Now, if you are wondering if you are a Paytm wallet user then how this change is going to affect you. Well, let us clarify those things for you.
- The first thing you need to know is that all the existing Paytm wallet account will be automatically migrated to the new payments bank. However, if you want to opt out, you can do so by writing to firstname.lastname@example.org
- Paytm account that has been inactive for last six month will not be transferred to Paytm Payments Bank Limited(PPBL)
- Even after transfer of your Paytm wallet to Paytm payments bank account, you will not be issued a regular bank account as the PPBL accounts will only be for Paytm associates and employees as of now. Other users will account will be called Paytm Wallet account with PPBL.
- On transfer of more than Rs25000 into your Paytm payments bank account, you will get a cashback of Rs 250, up to 4 times.
- There is no minimum balance required for maintaining a Payment bank account.
- All the online transactions like IMPS, NEFT and RTGS will be free.
- Payment bank customer will be issued a Rupay Debit card. Five transactions/withdrawal from any non-metro ATM is free from the debit card whereas in the case of metro ATM the limit of a free transaction is three times.
- Paytm will not be bringing out its own ATM, however, you can use other ATM to withdraw money.
- The first branch of Paytm Payments bank will be opening today in Noida. Paytm has set a target of acquiring 500million customers by 2020