The Paytm wallet will soon be merged with the PayTm Payments Bank Division. The company Head Vijay Shekhar Sharma has said that the approval from the Reserve Bank of India regarding the same is pending.
Vijay Shekhar Sharma owns 51 percent share in the Payments division of Paytm while One97 communications own 49 percent of the share. The latter looks after the payments division of Paytm.
Paytm will soon merge its wallet business with the Payments division
“As per directions of the Reserve Bank of India, One97 Communications Ltd. will be transferring its Wallet business after receipt of necessary approvals to the newly incorporated Payment Bank entity, Paytm Payments Bank Limited, under a Payments Bank license.”
-Paytm said in a statement
In an important declaration for its customers, Paytm stated – “Your current Paytm Wallet will now move to the Paytm Payments Bank Limited in the same capacity i.e. KYC Wallet as KYC Wallet and minimum detail KYC Wallet as minimum detail KYC Wallet, if we do not receive any communication from you against the same before December 21, 2016.”
So in case its customers do not express its disapproval for the same, their paytm wallet will then be turned into a paytm payments account which means that the customer will then be having a bank account with Paytm.
The customers can also redeem the wallet balance if they opt out of the paytm payment account option, bank details will have to be submitted for the same.
The automatic conversion of paytm wallet into the payments account will not be done in case the customer’s wallet balance is zero or in case they have not used it for over six months.
RBI had issued an in-principle license for the payment banks to Vijay Shekhar Sharma earlier this year.
