One97 Communications, the parent company of payments platform Paytm, has announced that it plans to merge the Paytm Wallet business with its newly-incorporated Paytm Payments Bank division. The company, headed by Vijay Shekhar Sharma, is waiting for the requisite RBI approvals to start operations of the Paytm Payments Bank. While ownership of the wallet business is transferred to the payments bank unit, One97 Communications will remain the owner of the e-commerce platform of the company.
The new payment bank unit will be responsible for the firm’s payment businesses, which include the Paytm wallet whereas One97 Communications still remains in charge of the e-commerce business.
Everything you need to know as a Paytm Wallet user
- In the statement issued by the company on Monday, it was stated that the user’s current Paytm Wallet would move to the Paytm Payments Bank Limited in the same capacity i,e KYC wallet as KYC and minimum KYC wallet as minimum detail KYC wallet, if the company doesn’t receive any communication from the user before December 21, 2016.
- If a customer chooses not to use the Paytm wallet, he/she could send emails to email@example.com and notify the company of opting out. The balance in the wallet could then be redeemed by a one-time transfer to their own bank accounts. However, the appropriate details such as the name of the account holder, account number and IFSC Code of the bank must also be provided to redeem the amount within 15 days of the notification.
- One failing to do so, the amount would be transferred to a ‘specially designated account’ with the Paytm Payments Bank Limited and the user would not be able to transact with their wallet money until bank details are submitted and the money is transferred into the desired account.
- If a customer’s Paytm wallet has been inactive for a period of 6 months and has zero balance, it would not be transferred to the Paytm Payments Bank unless specific consent regarding the same is given by the customer.
Paytm has seen tremendous growth over the last month after the demonetisation of the old Rs. 500 and Rs. 1000 notes by Prime Minister Narendra Modi. The company’s user base has crossed 155 million and half a million people are joining the platform per day since cash became hard to come by. Paytm has also been adding 20,000 merchants a day to its platform since demonetisation.