Paytm Payments Bank Launched: Cashback on Deposits, ATM Withdrawal Limits, and Other Details

All Paytm wallet accounts will automatically be migrated to the new Paytm Payments Bank. If you don't want to continue with the bank, you have to opt out by emailing help@paytm.com or visiting paytm.com/care to opt out and redeem your balance by transferring it to your bank account.

Your account will remain a wallet account with PPBL, not a bank account. Accounts that have been inactive for six months, and have zero balance, will not be transferred to PPBL without opting-in. In addition to the wallet account, you will also be able to open a Paytm payments bank savings or current account. Although both will have the same login, you will need to open a bank account separately.

How to open Paytm Payments Bank account?

Opening a Paytm Payments Bank account is an option only for Paytm employees and associates as it is being rolled out as a beta. Paytm users can also request an invite to become account holders in the payments bank. These accounts have a limit of Rs. 1 lakh per customer, and are different from wallets because they can offer debit cards, and interest.

To get a Paytm Payments Bank account, you have to visit Paytm's Bank page, and then click on Request an Invite. This will ask you to sign in to your Paytm account, and once you do that, automatically log your interest in becoming an account holder.

Paytm Payments Bank account features

1. Paytm bank offers cashback on deposits - If you transfer more than Rs. 25,000 into your Paytm payments bank account, you will get a cash back of Rs. 250 (1 percent), up to four times.
2. 4 percent interest rate - A big difference between a wallet and a payments bank is that the latter can offer interest. Paytm will be paying 4 percent per annum. This is lower than the 7.5 percent interest that Airtel payments bank is offering, and in line with what you get from Axis, ICICI, and HDFC.
3. No minimum-balance requirements, no charges for online transactions - There is no minimum balance requirement for the bank account. Also, online transactions (such as IMPS, NEFT, RTGS) will not have any charges.
4. Paytm bank offers debit cards but no credit cards - Unlike wallets, payments banks can offer debit (but not credit) cards. According to Paytm's website, physical services such as a chequebook, demand drafts, and debit cards, will be available from the Paytm payments bank, at a nominal fee. Interestingly, Airtel isn't offering a physical debit card, but a virtual one to use online. The Paytm bank will issue a Rupay debit card, which will be free, but it will charge Rs. 100 + delivery as an annual fee; a lost card replacement will also be Rs. 100 + delivery. A 10-leaves chequebook will also cost you Rs. 100 + delivery charges.
5. ATM withdrawals on Paytm bank debit cards - Paytm isn't bringing out its own ATMs. However, its debit card can be used with no charges five times at any non-metro ATM, or three times at metro ATMs. After that there will be a Rs. 20 cash withdrawal charge, while other transactions such as balance checks will cost Rs. 5.