The use of Paytm wallet has increased manifold after the demonetization scheme announced in November, 2016. Currently, a considerable portion of the Indian population is dependent on Paytm for daily expenses. Recently there were rumours which were circulated around through WhatsApp that Paytm wallets will be null from 15th January as Paytm is opening its new bank.
The real truth:
Paytm confirmed that these rumours are fake and the Paytm wallet will be transferred to Paytm Payments bank which is to start by 15th of this month but also added that e-wallets will work as they were previously.
“There are some rumours circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account”, Paytm said in a blog post.
Paytm stated that this bank is merely a “transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd” and Paytm users will be allowed to use their previous bank accounts without any hindrance. Shutting down all doubts, Paytm, in its blog post also said “You are not required to open an account with Paytm Payments Bank to use the wallet.”
“After the movement, we will be able to offer our customers a host of new services and features such as savings accounts where they will earn interest as well in addition to being able to avail all the current services,” a Paytm spokesperson said.
However, this doesn’t mean that everyone with a Paytm wallet will automatically get a new bank account as well. Anyone wishing to open an account with the Paytm bank will have to go through a procedure which involves documentation like as Aadhaar and permanent account number (PAN) and verification of KYC compliance. Paytm also confirmed that only the money in the bank account will earn interest.
Features of the Paytm bank will be as follows:
I. Self-declared merchants/ shopkeepers can accept up to Rs 50,000 directly in their bank accounts instead of the 20,000 INR they were allowed earlier.
II. Money can now be added faster through a single-screen.
III. For more secure transactions, fingerprints can be used as Paytm passwords.
IV. Queries regarding the account or wallet can now be addressed directly on the Paytm Community Forums