One97 Communications, the parent company of Paytm, is going to merge its Wallet business with its PayTm payments Bank division soon. The company is waiting for the RBI approval to start its Paytm Payments Banking operations. While the One97 Communications will remain the owner of the e-commerce platform, the ownership of the Paytm Wallet will be transferred to Paytm Payments Bank.
Earlier this year, RBI has granted in-principle payments bank license for CEO Vijay Shekhar Sharma. It is noteworthy to point to declare that PayTM’s bank division’s license is owned by Vijay Shekhar Sharma, but not the remaining 49 percent stakeholders.
PayTM included PayTM E-commerce Pvt. Ltd and PayTM Payments Bank Ltd as different entities in August. Reports suggest that PayTM’s e-commerce portal operates as a base for AliBaba’s operations in India.
How about PayTm wallets and existing cash?
PayTM Wallets will be a part of PayTM Payments Bank Ltd from now on. PayTM’s public statement declares that PayTM wallet owners can login into PayTM account and transfer their balance to their bank accounts by providing bank details like Account Number and IFSC Code.
PayTm has provided 15-day period to transfer their Wallet balance to their Bank accounts. If in case the balance hasn’t transferred, it will be moved to a specific account in PayTM Bank. However, PayTm owners will not be allowed to transact until they provide their bank details.
The process is not applicable for PayTM wallet users who are inactive from the past six months with zero balance. They have to login into their PayTM account and need to send an e-mail or in-app option to get integrated with PayTM Payments Bank Ltd.
“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,” reads the Paytm user statement.