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Paytm launched the first phase of its payments bank today by offering accounts on an invite-only basis to mostly its north India customers. The first physical branch is in Noida.
The e-wallet company plans to invest around Rs 400 crore to build its banking network over the next two years.
In its first year, the bank plans to expand to 31 brick-and-mortar branches and add 3,000 customers. By 2020, it plans to add 500 million customers.
In its second launch phase, Paytm will launch the bank in other metro cities. The payments bank has already received an investment of Rs 220 crore from its parent company One97 Communications.
Now that the Paytm Payments Bank is here, the essential question remains what will happen to your wallet account?
Here are all the answers you need.
What happens to Paytm balance?
Paytm wallet will continue to be a wallet solely even after the bank is launched. Customers can keep a cash balance in it as well as continue to transacting using the e-wallet.
While the wallet will become a part of the bank, it will not accrue any interest unlike money in the bank account. If customers wish to open an account with the Paytm Bank, they will have to complete all normal
formalities.
Will customers have to switch to Paytm Bank?
Existing customers will be transferred to the Paytm Payments Bank automatically post the launch. Making the switch is not optional.
How to open a new account?
Customers can log on to www.paytmpaymentsbank.com or download the iOS app to get an invitation for account opening. Customers will need to submit e-KYC (Know your customer) documents.
Is it possible to transfer money to other accounts?
Yes, it is possible to transfer money. However, this facility will not be available to customers who only operate an e-wallet.
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What is the annual interest on your deposits?
Paytm is offering a 4 percent annual interest rate and cash-backs on deposits. In comparison to other payments banks, this is the lowest – Airtel offers 7.3 percent while India Post has 5.5 percent interest rate annually.
The first million customers to open accounts with Rs 25,000 deposits will get cash back of Rs 250 instantly.
But, customers can open a zero-balance account, too. Online transactions will not charged.
Can I close my Paytm bank account?
In case, a customer wishes to withdraw or discontinue, their e-wallet will have to be closed.
They can easily close the bank account by sending an email to Paytm’s helpdesk – help@paytm.com. They will also have to give their account number and IFSC code for branch. The balance in the e-wallet will be then transferred to the customer’s alternative account.
Will the bank offer card services?
Paytm will issue debit cards in partnership with RuPay cards for an annual fee of Rs 100. First five ATM transactions will be free in non-metro cities per month. Post that, customers will be charged Rs 20 per ATM withdrawals.
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