Rumours were mounting that users of Mobile wallet Paytm will not be able to use their mobile wallets after 15th January 2017. The rumors were floated after Paytm Payments Bank was launched, which had the requirement of migrating the mobile wallets to the bank by OIne97 Communications. Paytm has around 180 million registered users.
It is informed that the migration of wallets to the bank is an automated process, and the mobile wallet users, will continue to have the benefits associated with ti) heir existing wallet. Only wallets which are inactive for six months will not be transferred to the payments bank, for which a specific consent from the users is required. These users must send an e-mail to firstname.lastname@example.org or log in to the website to notify the company in case they want to opt out or transfer their money
The transferring process involves following steps:
a. Provide details such as Name, Bank Account number and IFSC code.
b. Money will be transferred to their accounts within 15 days of Paytm getting the e-mail. The transfer will be done free of cost.
c. Failing to send an e mail will entail the wallet being kept in a special designated account with Paytm Payments Bank, and the user will be unable to transfer the money till submission of bank details and confirmation that it is being transferred to one’s own account.
d. Further, the migration of wallets to the Payments bank does not mean that the wallet users will become account holders of the Payments Bank automatically. Option will be given once a full- fledged operation of the bank is started.
e. As of now, the wallets will continue in their present state, ie., either as a Know Your Customer (KYC) wallet or minimum KYC Wallet. Full KYC users can store up to Rs. 1 lakh while minimum KYC users can store up to Rs. 20,000.
What are the benefits of opening an account with Paytm Payments Bank?
i) Access to various range of financial services, including Savings, Current account and debit card facilities.
ii) Earn interest on the money available in their accounts.
iii) Having a Paytm Payments Bank Account and a wallet, would enable A SEAMELESS TRANSFER between the two. As of now a wallet user is transferring funds from other banks, through Net Banking, Debit or Credit Cards.
iv) The Paytm Payment Bank is offering an interest of 7.25% interest for Savings Accounts.
The Constrains are:
a) One can have a balance of only Rs. 1 lac in the account as per RBI guidelines.
b) If all banking operations are to be done using only mobiles, customers must be more careful about the security features.
c) Only Savings Accounts and transaction services can be offered by Payments Bank.
In a nutshell:
- Paytm is a semi dosed mobile wallet
- It can be used to make payments, transfer of funds
- It is not useful in drawing cash from ATMs or Points of Sale
- Minimum KYC is done using only the mobile number.