Paytm was bought by One97 Communication in August 2016 with Vijay Shankar Sharma the CEO of One97 now holding 51% stake in Paytm.
Paytm is the third entity in the country to launch a payments bank after Airtel and India Post.
One97 Communications founder and CEO Vijay Shekhar Sharma has said all active wallet accounts on the payments app will be transferred to the payments bank. Recently, it raised another round of funding which is likely to advance its further plans with the new banking venture. The company will benefit from the Japanese conglomerate SoftBank's over Rs 9,079 crore investment in Paytm - the largest fund infusion by a single investor in an Indian start-up. "The account will have zero balance requirement and every online transaction (such as IMPS, NEFT, RTGS) will be free of charge", the statement said.
Paytm Payments Bank's cash withdrawal charges using the ATM is similar to any other major bank of the country. Here's how you can apply.
Since it is a bank account, you will get both a debit card and cheque book.
Post the launch of the service on Tuesday (May 23), users will be invited to open a permanent account with the payments bank.
India Post Payments Bank is offering free debit cards, but you will be charged Rs100 if you take add-on cards or a new card in case of theft or loss of card. Click on "Request an Invite". However, if you chose not to migrate to Paytm Payments Bank, your wallet will be closed and you will not be able to make payments using your Paytm Wallet.
It was past year that Paytm made a decision to separate its e-commerce portal from the wallet business and has since then operated them separately. Enter the OTP to verify login.
How is Paytm Payments bank different?
The company said in a prepared statement that accounts for Paytm Payments Bank will initially be available on an invite-only basis.
Also, as per Banking rules, all PPB account holders will need to do a KYC (Know your customer) before they open an account - To facilitate this, Paytm is opening up KYC centres all across India. "We believe we have a compelling value proposition for consumers, '" the company said when asked how it would attract users as rivals are offering higher interest rates.
"The first million customers to open accounts and have deposits of Rs 20,000 will get cash back of Rs 250 instantly".
Aiming to fuel the digitisation drive, this account has been created to help achieve financial inclusion in our country, in line with Paytm's mission of bringing half a billion Indians in to the mainstream economy.