- 1 What is Paytm Payment Bank & How will you open an account?
- 2 Why You or I need The Paytm Payment Bank Service in 2017?
- 3 How to Open Paytm Bank Account in under 5 Minutes
What is Paytm Payment Bank & How will you open an account?
Paytm Payment Bank is launched on May 23 2017 and now it’s the most popular bank among adults. Paytm which is already populated for the easy cashless transaction has kicked their backs to offer more to Indian Citizens. Now, their bank offers many physical banks like services. Paytm Payment bank offers UPI, debit card and interest and facility to storing money. As well as it will offer fixed interest of upto 7.03% on reaching a certain limit. Which I will explain later.
Now before we talk about how to open Paytm bank account. First understand why you need a digital Payment bank.
Why You or I need The Paytm Payment Bank Service in 2017?
Comparing 2017 with 2012 or so. It is now getting easier to open a bank account than in the past. In order to open bank account in 2017. Regardless of the organisation you go with, all you need is Aadhar card and PAN card.
The Jan Dhan Yojna scheme launched in 2017 by the Modi Government promotes the 0 balance account. Which of course revolutionizes the banking system but, only Government sector and Limited banks shows interest on it. While other still required to maintain a minimum balance to be in your bank.
Digital banking system (payment banks) allow you to start your bank in under least possible team. I like to point, least possible efforts are required to open them. All you need is Aadhaar and PAN card and smartphone which we all have. Their is no hassle to stand in line. Also, it give you enough space to store money and earn interest on upto 1 Lakhs.
Paytm Payment Bank Features
Paytm payment bank, which regardless is made possible with other private bank offer the 0 balance model. Like other Payment bank, Kotak 811.
Paytm payment bank offer you the streamlined service for storing and using your bank amount for shopping.
Paytm Bank features
- Easy to open an account in under 5 minutes. No agent required.
- Your phone number is your bank account. IFSC code is easy enough to keep in memory.
- Your bank is in your mobile. No need to visit branch ever and wait in lines.
- Zero balance account opening. Store upto 1 Lakhs (learn more) and spend till zero.
- A single app for both recharge, shopping and banking.
- Best for anyone above and at the age of 18 years old to experience complete banking services.
- Free virtual and physical debit card. Physical debit card is not yet launched by company. But the CEO announced that it will be launched for their customer very soon.
Though both wallet and saving account is a different concept. But whats the differnece between Paytm Wallet and Bank?
Paytm Wallet vs Paytm Bank
Paytm wallet is just like your own wallet. You keep money on it in order to pay for something. You don’t put money on the wallet for saving. Or it does not offer interest of collecting money.
Money in your pocket remains the same unless you spend it on something.
Paytm Bank is like any other bank where you keep your sum to store. Or to see growth in amount. Like any physical bank, Paytm offer you 4% interest on saving account.
Though it pays lesser than competition. Like Airtel Money offer 7.25% per annum and Kotak 811 upto 6.50% per annum. But Paytm have already gain millions of trust in India.
Debit Card Service
Payment banks are not allowed to issue credit cards as per RBI rules. Unlike other services, Paytm offer RuPay Platinum Debit card for their customers. For now, physical card has not been launched. But founder Vijay Shekhar Sharma drop a glimpse of it on his Facebook feed.
The RuPay debit card for your
Paytm का ATM !
Paytm Fixed Deposit Plans
Paytm has teamed up with Indusind Bank to offer FD service to their customers.
Unlike other payment bank system. Paytm allows FD only if you crossed 1 Lakh in your saving account. Paytm take care of the exceeding amount by making FD of it.
Suppose you have 1.35 Lacs in your saving account. Paytm make a fixed deposit of 35000 and the leave the remaining 1 Lakhs on your saving.
If you again exceed the limit. Paytm take care of that amount by opening another FD.
Say, you already have created an FD of 35K, now you added 30K more to your saving account. Resultant in 1.3 Lacs. Paytm will create another set of FD of 30 lacs for you.
Unlike other banks. Paytm offer you to redeem or break your FD anytime. They don’t charge any penalty over breakage. Paytm offers 7.03% on FD and their maturity period is 13 months as per Indulsind bank policy.
How to Open Paytm Bank Account in under 5 Minutes
Unlike other payment bank. Paytm offer you the quickest possible way to open a saving account. In order to get started you will need.
- Aadhar Card (UID)
- PAN Card
You need to download Paytm mobile app in your smartphone to get started.
Download the APP
Paytm deprecated sign up with Facebook and Google. So you need to create Paytm account manually.
Head toward the Bank option from bottom menu bar. Tap on it. A pop will ask you to proceed. Click blue Proceed button.
Paytm ask you to set passcode which will be later used for UPI and transactions. Set it with your desired 4 digit PIN. You can change it later too.
App ask you to set a nominee. Set it now. Details will be asked like Name, Relationship with you or account holder, DoB and Address.
If for any reason you have done KYC before. Your account will be opened already.
If you’re new to Paytm KYC. You have option to visit Paytm nearby KYC point with hard copy of Aadhar Card. Or you can raise a request for an appointment. The Paytm agent will visit you and complete your KYC in hardly 5 minutes. Your account will be live as soon the KYC completes.
If you opt-in with a visiting KYC point. Open the Home tab of Paytm app. Scroll the top bar until you find Nearby KYC points. This section will show you all available KYC points in your location. Tap on the direction button next call to get the direction on Google/Apple Map.
I recommend you to visit KYC point by yourself. Because in my situation, I have raise appointment. The Paytm agent visits me after a week of raising appointment.
Bank Account Opened, whats Next?
Its the time to load cash into your saving account. In order to load cash you can use following services. Paytm does not limit any minimum amount to be transferred. You can submit from Rs.1 to Rs.10000 without any hosch posch.
- Bank account transfer (NEFT/RTGS)
- UPI transfer/IMPS
I recommend you to use BHIM APP for UPI service. Paytm also provides UPI service where your phone number will be your VPA address. In case if your phone number is 9999990000 then your Paytm VPA will be 9999990000@paytm
- Open BHIM APP
- Tap on Send
- Tap on Mobile/Aadhaar/UPI ID
- Enter your Paytm UPI ID and verify
- Enter amount
- Click on big Pay button
- Enter your UPI code and send
- It would hardly takes minute to transfer money
Why there is a limit of 1 Lakh?
RBI restricts the maximum amount to be deposited in Payment banks is Rs.1 Lakhs (source). This amount may or may not be increase with time. Till today the max is just 1 Lakhs.
In order to handle such high payment deposit. Paytm partnered with private sector banks. Your exceeded amount will be enrolled in a separate fixed account. The dashboard for FD will be found under Paytm > Bank section.
Nothing left for now. In my later post I will try to cover comparison between Paytm and Kotak 811. Till now have fun with your brand new bank account. Let me know if you are facing any issue or difficulty making your own account.