PayTM is soon to open Paytm payment banks across the country. With Airtel payment banks already established in Rajasthan with an imminent advance to the rest of the country, the under-privileged section of the societies of India stand to benefit a lot and the digital money could possibly be the new paper money.
All you need to know about Paytm payment banks:
Paytm payment bank is waiting for regulatory approval from RBI and once it’s operational, the bank will sell loans, wealth and insurance through partnerships. The CEO of Paytm, Vijay Shekar has invested 112 crore in the bank and owns 51% of the share of Paytm payment banks and the remaining 49% is owned by Paytm’s parent company, One97 communications. The Chinese ecommerce giant, Alibaba – who along with its affiliate invested USD 680 million in Paytm – has no stake in the payment bank.
Merging the Paytm wallet with the payment bank is neither automatic nor mandatory. Paytm users can agree to connect their Paytm wallet with the Paytm payment bank and use the wallet service uninterrupted, although the Paytm users can opt out of this merging through email to care@paytm.com. Within 15 days of sending the email, the person can transfer the money from the Paytm wallet to his/her bank account can do so with no transfer fee.
“Paytm Payments Bank will also soon bring additional benefits such as a bank account, cheque-book and a debit card.You will also earn interest on the money available in your account.” Paytm announced in its Medium account.
Currently Paytm has 180 million users and the payment bank is expected to have 200 million users once it’s operational. The security of the payment bank is expected to be watertight as the bank doesn’t use OTP in its banking process, something that it’s unique feature of the bank.
