On Tuesday, Paytm CEO Vijay Shekhar Sharma formally announced the launch of the Paytm Payments Bank, whose services were already available to everyone via the latest update to the Paytm app. With Monday’s announcement, in addition to the bank’s online services, the offline presence goes live as well. At a launch event attended by Finance Minister Arun Jaitley, Sharma laid out the outlines of how the bank will grow, and shared some details about the progress made so far.
From a customer’s perspective, the Paytm wallet and the Paytm Payments Bank are two separate entities, though both are owned by the same corporate entity. Wallets will continue to operate, but if you already have the mobile app to manage your wallet, you can use the same to manage your bank account as well, if you choose to open one. The wallet operates separately from the bank account, they are not linked, so you can continue to use the wallet without any change, even if you create a bank account.
The Paytm Bank officially opened its services in May this year. There are some differences between payments banks and mobile wallets – these accounts are similar in that they’re designed to be easily managed digitally, with a Rs. 1 lakh limit on the deposit. However, payments banks can offer debit cards, and pay interest on the money deposited in the account.