Everything You Need to Know About PayTM’s Wallet Merger with PayTM Payments Bank

PayTM is soon going to merge its PayTM Wallet business with its PayTM Payments Bank division. The company is waiting for RBI’s green signal to start its banking operations.


The parent company of PayTM – One 97 Communications is still going to carry on other e-commerce activities on PayTM’s online portal. However, the wallet service will be merged into PayTM’s future banking business. It is noteworthy to point out that PayTM’s bank division’s license is owned by PayTM’s founder – Vijay Shekhar, not One 97 Communications.

PayTM incorporated PayTM Payments Bank Ltd and PayTM E-commerce Pvt. Ltd as different entities in August. Many reports also suggest that PayTM’s e-commerce portal might act as an operating base for AliBaba’s operations in India.

What will happen to your PayTM Wallet and Existing Balance?

As mentioned above, PayTM Wallets will now be a part of PayTM Payments Bank Ltd. As per PayTM’s public statement, the current PayTM wallet owners can login into PayTM account and transfer their existing balance to their bank accounts by providing bank details (Account Number and IFSC code). The company is giving a 15-day time period to wallet owners to transfer their Wallet balance to Bank accounts (till December 21). For the ones who fail to do so, the balance will be transferred to a specialised account in PayTM Bank but they will not be able to transact until they provide their bank details.

Also, the above process is not applicable for the users whose PayTM wallet has been inactive for last six months with zero balance. Such users will have to login into their PayTM account and send a written consent via e-mail or in-app option to get included in PayTM Payments Bank Ltd.

PayTM Bank: License and Operative Capacity


A spokeswoman for PayTM told Economic Times,”As per the directions of RBI; the company will transfer its wallet business to the newly incorporated PayTM Payments Bank Limited (PPBL) after receipt of necessary approvals. The (payments bank) is in the process of obtaining final licence from RBI and will commence operations after obtaining due approvals” she said. But she did not reveal anything about Alibaba and PayTM’s collaboration, terming it as a mere “speculation”.

Another interesting fact is that Alibaba’s digital wallet – Alipay is in technological cooperation with PayTM. Also, the combined share of Alibaba and its subsidiary – Ant Financial – in One97 Communications is 40 percent. Alibaba has invested around $680 million in One97 Communications.

For all those wondering how PayTM Banks are going to operate – The Central Bank of India has bestowed an ‘in-principle payments bank licence.’ to PayTM’s founder. Vijay Sharma owns 51% stake in PayTM Bank while One97 Communications owns the rest 49%. In a recent interview, Sharma revealed that he had invested Rs 112 crores in the PayTM Bank.

Alibaba does not hold any direct share in the upcoming PayTM Bank. PayTM’s blazing success could be attributed to PM’s demonisation move. Various reports suggest that PayTM now witnesses over 5 million transactions every day.

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22 Comments on "Everything You Need to Know About PayTM’s Wallet Merger with PayTM Payments Bank"


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December 7, 2016 1:30 am 1:30 AM

Now it is clear all the demonetisation stunt was to favour some corporates,one of them being PayTM.

I am unable to transfer my money from PayTM back to any of my bank accounts and the reason being given in technical problem !
Is it happening with any one else ?

December 7, 2016 7:32 am 7:32 AM

Only principal amt u can transfer it. No cashback can transfer to bank

Kirti Khurana
December 5, 2016 7:57 pm 7:57 PM

this is all bullsh+t ! Have a kyc saving bank account in a decent private bank with all the branchfree banking facilities & live a hassle free life.

Anil Kumar Vaishnav
December 5, 2016 10:44 pm 10:44 PM

Ma’m decent bank account need least 10000 rupee deposit, who will provide that.

Deepak Vasudevan
December 6, 2016 12:37 pm 12:37 PM

If you have a Android phone, download and start using Digibank by DBS. It is zero balance account with 7% interest on whatever amount is available in the account.

Kirti Khurana
December 6, 2016 2:52 pm 2:52 PM

KOKTAK MAHINDRA BANK also have a full kyc 0 balance JIFI account that too can be opened with their app with PAN & Aadhaar online video verification support.

Kirti Khurana
December 6, 2016 11:15 am 11:15 AM

for 10000 rs they will give you an interest or you can put it in FD for higher rate & the total combined amount will be there.

Mandar Sherbet
December 6, 2016 4:18 pm 4:18 PM

I think Payment Banks are not allowed to open Fixed Deposits.

Kirti Khurana
December 6, 2016 7:12 pm 7:12 PM

payments bank only offers 0 balance ac.

December 6, 2016 1:30 am 1:30 AM

Almost all salary accounts are zero deposit. Also, are there people who own smartphones and use the internet regularly that do not have a life savings of 10,000 ? If so, I’d suggest you get your priorities in order.

Anil Kumar Vaishnav
December 6, 2016 9:26 am 9:26 AM

You’re far from fact dear.

Kirti Khurana
December 6, 2016 12:16 am 12:16 AM

sbi is also a competitive brand only if you can mind the crowd.

December 6, 2016 1:48 am 1:48 AM

Point is to being cashless, easy to send/receive, pay., Traditional banks alone don’t help penetration of being cashless. traditional banks will be good till card payments. i think all payment banks must link UPI as phone pe. Jio+SBI payment bank, phone pe+ yes bank., I do had a confusion of payment bank, traditional banks, UPI, wallet. What decide their limit line..I expect all payment banks will be with options like in phone pe.

Mandar Sherbet
December 6, 2016 4:20 pm 4:20 PM

Even I am using PhonePe App with UPI integration from Yes Bank. It works awesome. I am now a big fan of UPI and am trying to promote it amongst the people I interact with & exchange money with. I have already managed to get a few transactions done.

Kirti Khurana
December 6, 2016 11:24 am 11:24 AM

These mobile wallets are built for those very poor third world countries where there is no banking & atm penetration but. in a country like India with bank branches & atm counts in lakhs with all the branch free financial solution is there,
A few months ago I went to a SBI branch & when i entered manager’s room i was pleased to see the branch manager was himself activating mobile banking for a guy.
He told me that his banch got the orders that we need to activate mobile & internet banking for more & more customers.

Kirti Khurana
December 6, 2016 11:10 am 11:10 AM

i don’t like the UPI concept Why all banks pushing their own UPI apps this results in a bunch of upi receiver addresses, instead their should be only 1 app with a common Upi app

Mandar Sherbet
December 6, 2016 4:17 pm 4:17 PM

UPI is fully interoperable. One need not have a UPI VPA for each bank. Just one VPA and money can be transferred to & from any other UPI VPA, irrespective of the App or Bank account.

Kirti Khurana
December 6, 2016 7:17 pm 7:17 PM

if i use SBI UPI app then my address would be xyx@sbi but if i add another bank account in the same app that means my UPI address would be same for both right? how it’s gonna work?
I’m little confused.

December 6, 2016 9:30 pm 9:30 PM
Let me explain Phone pe use 1 vpa, and there is an option to select default bank account of all banks you added. If someone send money to that vpa it goes to your default selected bank account. Phone pe do have a wallet, a separate one from vpa. Phone pe work flow is like wallet + UPI with one vpa ending with ybl. Axis pay is like no wallet + UPI with each added bank has an option to create VPA unlike phone pe. say i have Sbi,icici,axis, idbi…..i have created phone number+sbi@axisbank for Sbi, 9999999999icici@axisbank,9999999999axis@axisbank,9999999999idbi@axisbank. More VPAs it’s… Read more »
December 6, 2016 7:14 pm 7:14 PM

I think what Kirti is trying to say is that VPA should be for a person, and an app should simply allow cross linking it to any existing bank account. In that model, you need just one VPA even if you have multiple bank accounts. If you change your bank, your VPA could stay with you like MNP.

In current UPI implementation, you need a separate VPA for each bank you have an account with.
Opening an account in another bank means a new VPA.

December 6, 2016 9:49 pm 9:49 PM
Then each UPI apps must be like must be with 1 vpa like phonenumber@bankname and default bank selection within that app. Say 9999999999@ybl for Phone pe. 9999999999@axisbank for axis pay 9999999999@sbi for Sbi pay 9999999999@icici for icici pay 9999999999@idbi for idbi pay. 9999999999@jio 9999999999@paytm 9999999999@airtel 9999999999@idea 9999999999@mobikwik 9999999999@freecharge I think new coming payment banks also work like one with UPI and VPAs now. Internally with in app there must be a option to choose your default account of all added, so VPA belongs to you default selected bank. VPA extension say it belong to which UPI mobile app. Like this… Read more »