2 days back Paytm announced that they would be moving all the users money from Paytm wallet to a new entity called the Paytm Payments Bank in the coming days. This does not significantly affect the customer experience and the whole system we know remains mostly the same.
It is important to note that Paytm is not commencing Paytm Payments Bank operations yet. The notice is just about the transfer of money from Paytm wallet to the nearly-approved payments bank license, as issued by RBI.
As the notice says, Paytm wallet users with their KYC details verified will have limits of 1 lac with the new Paytm Payments Bank. The Paytm wallet users without their KYC verified, AKA with minimum KYC verified, will have limits of Rs 10000. It is important to note that RBI has approved limits of Rs 20000 per month until December 31, owning to the recent demonitization of the old Rs 500 and Rs 1000 Indian currency notes. Cashless experiences have been booming and the Rs 20000 limit will naturally allow users to visualise a seamless lifestyle. Post December 31, the limits will be back to Rs 10000.
Getting back to the Paytm Payments Bank notice, it is not that users will be automatically created a new bank account with Paytm Payments Bank. The users will always have a choice to create one though as and when the operations begin in India. Airtel is the only service to launch the payments bank in India currently – Gujarat, to be specific.
Paytm confirms that it is not mandatory for users to create a bank account with Paytm Payments Bank. It is purely up to the user’s choice, and the usage of Paytm wallet and Paytm services can be continued without issues.
Those Paytm wallets without 6 months activity will not be moved automatically. Users can write a email to Paytm to confirm the move though, or by logging into the Paytm website or the Paytm mobile apps.
In case you ever wish to not move your money to Paytm Payments Bank, again, you can write a email to Paytm, asking them not to move the money to the new entity. This has to be done by December 21. Post that, money will be moved from your Paytm wallet to Paytm Payments Bank automatically, without your consent. You will be given a choice to share your other bank account details and you can withdraw your existing Paytm wallet money to that account. It is a one-time move and will be honoured the second time. Naturally, this means that you cannot use Paytm wallet services again. You can create a new account with the Paytm Payments Bank in the future though.
Also, Paytm confirms that you will not be required Aadhaar details to create a bank account with Paytm Payments Bank. You can use any government mandated document to confirm your identity. Full notice