PayTm has been officially launched payments bank. The PayTm Bank officially opened its services in May this year. There are some differences between payments banks and mobile wallets – these accounts are similar in that they’re designed to be easily managed digitally, with a Rs. 1 lakh limit on the deposit. However, payments banks can offer debit cards, and pay interest on the money deposited in the account.
Creating a Paytm Payments Bank account works pretty seamlessly from the mobile app, as all you have to do is sign in, request an account, and then enter your address for the KYC formalities. If you’ve already done the KYC for a Paytm wallet, even this step isn’t required.
For clarity – the Paytm wallet and the Paytm Payments Bank are two separate entities. Wallets will continue to operate, but if you already have the mobile app to manage your wallet, you can use the same to manage your bank account as well, if you choose to open one. The wallet operates separately from the bank account, they are not linked, so you can continue to use the wallet without any change, even if you create a bank account.
There will be no charges to deposit money into your Paytm account and up to 3 withdrawals in metros (and up to 5 in non-metros) via ATMs or branches will be free of charge. Paytm Bank is aiming to open 31 physical branches across the country in the near future.