As Paytm received approval for the launch of Paytm Payments Bank, the existing wallets of all the users will be automatically migrated except the ones which have remained inactive for six months or more. Following the launch of the bank, One97 Communications is transferring its mobile wallets to Paytm Payments Bank.
“The migration of the wallets to the bank will happen automatically, and Paytm customers will continue to enjoy all the benefits associated with their existing Paytm Wallet,” says Madhur Deora, CFO, Paytm.
“Only wallets that have been inactive for the last six months will not be transferred to the payments bank unless users give specific consent for the same,’’ he adds.
Such users should send an email to email@example.com, or log in to the website to notify the company if they want to opt out or transfer their money. They should provide details such as their name, bank account number and IFSC code for processing of their request.
The money will be transferred to their accounts within 15 days of Paytm getting the email, says the notice issued by Paytm. This transfer is free of charge.
“If you fail to do so (that is, send the email), your wallet money will be kept in a special designated account with Paytm Payments Bank Ltd, but you will not be able to transact that Wallet money till you submit bank details and transfer it to your own bank account,’’ a notice issued by Paytm says.
Migration of wallets to the payments bank does not mean that the wallet users will become account holders of the payment bank automatically. That option will be given to users once the bank launches full-fledged operations.
For now, the wallets will continue in their existing state, that is, either as full Know Your Customer (KYC) wallet or minimum KYC wallet. Full KYC users can store up to Rs 1 lakh in their wallets, while minimum KYC users can store up to Rs 20,000 in their wallets.
Opening an account with the Paytm Payments Bank can have its benefits. “It would mean access to a range of financial services including savings and current bank account, and debit card facilities. In addition, customers would also earn interest on the money available in their account,’’ says Deora.
If you have a Paytm payments bank account and a wallet, you would be able to transfer funds seamlessly between the two. Whereas, wallet users have to transfer funds from their other bank accounts through net banking, debit or credit card at present.
But, users cannot have more than Rs 1 lakh balance in the payments bank accounts as per RBI guidelines, points out V N Kulkarni, former official of Bank of India and debt counseller with Abhay. Also, if all banking operations are to be carried out using only the mobile, customers must also be careful about security, he adds.
According to RBI guidelines, a payments bank can offer only savings bank accounts and transaction services. Airtel, which was the first payment bank to launch operations in November 2016, is offering 7.25 per cent for the savings bank accounts.
Paytm has alerted users to not believe in rumours which suggested that the existing mobile wallets will stop working post-January 15. The rumours started doing the rounds after Paytm received the RBI approval for the launch of Paytm Payments Bank.