After a few delays, Paytm Payment Bank is finally live. This makes it the third Payment bank to be operational in India after Airtel and India post. But exactly does that mean for an average Paytm wallet user? Let’s discuss.
What are Payment banks? Why do we need them?
The primary aim of Payment banks is to include everyone in the banking system. There are people who still don’t have a bank account and these Payment banks are meant can help offer zero balance account to even people living in remote areas.
- These Payment banks can’t issue credit cards, but they can issue debit cards and cheque books.
- Payment banks can accept deposits up to 1 lakh and are allowed to offer interest to their customers
- Payment banks are also allowed to invest the money people deposit with them in bank securities
- These banks will have physical outlets from where you can withdraw money. These outlets could be as small as a departmental store nearby.
- Payment banks are expected to boost e-commerce and reduce cash transaction. Most importantly, they could help sending money to people living in remote areas become a lot easier.
- Currently, 11 Payment bank license have been issued by RBI, more will follow later.
And here is what you should know about Paytm Payment Banks:
- If you are a Paytm wallet user, your wallet account will be transferred to Paytm Payment Bank. You won’t get an account number though and it shall still remain a regular wallet that you are accustomed to.
- If your Paytm wallet account has remained inactive for 6 months and has zero balance, it will not be migrated to Paytm Payment Bank unless you opt-in.
- You can open a Paytm Payment Bank saving account too, but the facility is available only on invite only basis. The Payment Bank app is in beta testing and is the only operational for Paytm employees and associates as of now.
- You can request an invite on the official Paytm Payment bank page
- First physical Paytm Payment Bank is now open in Noida.
- Paytm will offer 4 percent Annual interest on deposits, that will be credited monthly. This isn’t much, to begin with.
- You can avail Rs. 250 cashback by adding 25000 INR to your Paytm Payment bank account. This offer can be availed four times by a user.
- If you open an account with Paytm Payment Bank, you will get a Virtual Rupay debit card for free. IMPS, RTGS, NEFT, and other online transactions will be free too.
- You will have to pay Rs. 100 as annual charge along with a delivery fee for Rupay Debit card. Other rates are as described in the chart below.
- The debit card can be used five times at non-metro and 3 times at metro ATMs for free in a month. Post that, Rs. 20 will be charged as ATM transaction charge.