Paytm has announced is set to launch its payments bank from May 23, after getting a final nod from the Reserve Bank of India (RBI).
Paytm had planned to kick start its payments bank in 2016, but had to postpone the launch multiple times due to regulatory delays.
Paytm, which is run by parent One97 Communications, recently created two separate entities, Paytm E-commerce and Paytm Payments Bank . The wallet business has also been transferred to the newly created payments bank entity to meet RBI’s guidelines.
The announcement said Paytm’s existing wallet users, apart from the ones with zero balance and inactive for last six months, will move to Paytm’s Payments Bank. This is just a transfer of ownership, and post the launch users will be given an option to open a separate bank account.
More than that, the company claims that it will not charge any fee to transfer money from wallet to payments bank account. In case of users wanting to opt out of the payments bank, they will have to write to the company post which they will be provided with an option to send money to their bank accounts.