Using Paytm? This information can be useful for you.

Indian digital payments wallet Paytm has transformed itself into payment bank. Aiming to acquire 500 million customers in the next three years, the company said in a statement.One97 Communications, the parent company of digital payments player Paytm, is transferring its wallet business to Paytm Payments Bank. As per the Reserve Bank of India’s (RBI) guidelines, the company will transfer its wallet business to the newly-incorporated payments bank entity under a payments bank license awarded. If you are using Paytm wallet services, what will be this move’s impact on you as current customer of Paytm? Here we share some important points related to this –

Auto existing balance transfer into new app – The money in your Paytm account will be transferred to the Paytm Payments Bank Limited (PPBL) automatically, as the wallet business will now become a part of the new company. Those who don’t want to continue, can opt out by sending email to help@paytm.com or visiting paytm.com/care. Users wallet money will be automatically transferred to Paytm Payments Bank, however, it will remain a wallet account unless the users chooses otherwise. Users need to open Paytm Payment Bank’s account separately.

Cheque book & debit card – Paytm account holders Will get cheque book and debit card like they get from any other bank. However, there is no credit card option. As payment banks are not allowed to offer lending facility.

Money wallet services to continue – There will be no change in Paytm app. The user experience will remain the same as the app will continue to work as it does. Users can continue to use it to pay for cabs, fuel, food, etc. the same way.

Interest offered – Paytm’s payments bank will offer an interest rate of 4% on deposits. To get the initial set of users on board, Paytm will give cashbacks to the first 1 million account holders. The bank will also offer a cashback of Rs 250 to customers depositing Rs 25,000 in the payment bank.

Paytm wallet accounts that have been inactive for six months, and have zero balance, will not be transferred. These users need to opt-in, if they want their accounts to be moved.

Zero balance – Paytm Payment Bank accounts will be zero-balance accounts. This means there will be no minimum balance requirement. The company also said that all online transactions such as IMPS, NEFT and RTGS will not incur any charges.

Initially services on invitation basis – In a statement, the company said that accounts for Paytm Payments Bank will initially be available on an invite-only basis. Paytm will roll out the beta banking app for its employees and associates for now. Paytm customers can request for an invite on the Paytm bank’s website or on the Paytm iOS app. The invite-only limitation will be applicable for the first six months.

Paytm bank ATMs – Paytm also plans to open its own ATMs. The company’s debit card can also be used at any non-metro ATM free of charge for the first five times. At non-metro ATMs, this limit is three transcations. Post this, there will be Rs 20 cash withdrawal charges. Other transactions at ATMs will cost Rs 5.

Branches & customer service points – The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year of operations, the company said.