Paytm wallet has had a dream run in the country since Prime Minister launched the demonetisation drive in November 2016. The wallet quickly took advantage of the move and using its potential, quickly partnered with multiple outlets and service providers all across the country. Paytm’s fortunes have skyrocketed since then and Paytm has also added multiple new features since then. While the app had competitors before like Freecharge, Mobikwik, etc, Paytm has made the most of demonetisation and overnight managed to become the most popular payments app in the country. The app recently also integrated with UPI and now is UPI compliant. Paytm is perhaps one of the only Indian wallets who is not only a wallet but also an e-commerce site that supports payment over the wallet and also acts as an online store with having a huge inventory of products. Paytm also recently began movie ticketing services.
There have been rumours floating around that according to new guidelines by RBI, Paytm will shut or will have to undergo intensive changes to survive. However, the app recently released a blog update assuring users that the app will not change in any way except for now being changed to Paytm Payments Bank keeping in line with new RBI guidelines. Very soon, Paytm will change to Paytm Payments Bank. However, with Paytm Payments Bank, while users can continue to make payments, Paytm will change into a micro-bank where users can treat their Paytm account as a bank account. The Paytm wallet and Paytm Payments Bank stay different. They can get a cheque book, a debit card etc from the Paytm bank. Users will also be able to earn interest on the amount in their account, a la a true bank.
Having a Paytm Wallet does not translate into an automatic Bank Account, which will have to be opened like a usual account. However, users currently using the Paytm wallet need not mandatorily open an account. It is optional and only those who wish to have a new bank account need open one with the Paytm Payments Bank. The new Bank account will be a usual bank account and users can also transfer money between other bank accounts using their account. Just like the present Paytm wallet, there are no additional fees for transfer of money through the Paytm Payments Bank account. The new Paytm wallet will be called the Paytm Payments Bank Wallet and if users have not had an active Paytm Wallet or have not had any transaction on the app for the last 6 months, then their account will not be transferred to the Payment Payment Bank Wallet and they would have to give separate consent for the same. Jio News: Vodafone India seeks merger with Reliance Jio; Jio speeds shoot up to 18 Mbps in December
According to the Paytm Blog: As per RBI guidelines, your Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank. Till now they were issued by One97 Communications Limited. This will happen automatically, and Paytm users do not need to do anything additional. Our customers will continue to use all the services provided by the Paytm Wallet, and enjoy all the benefits . Your Paytm wallet will work as it is, even after 15th January. Log in details, wallet balance and user experience will remain the same. Your Paytm Wallet experience will remain the same for all current use cases such as paying at stores, paying for Uber rides, ticketing, fuel, etc. Not just that, Paytm Payments Bank will also soon bring additional benefits such as a bank account, chequebook and a debit card. You will also earn interest on the money available in your account.