Employees work at their desks at the One97 Communications Ltd. headquarters in Noida, Uttar Pradesh, India (Photographer: Kuni Takahashi/Bloomberg)

Hello Paytm Payments Bank, Goodbye Paytm Wallet?

The transformation process for Paytm from an e-wallet company to a payments bank is officially complete. On Tuesday, the company launched its much talked about payments bank.

Over the last couple of days, wallet users received messages from the company telling them that on May 23, the existing wallet business will be transferred to Paytm Payments Bank. But does that mean a customer has no choice but to create a payments bank account? What happens to the existing wallet? What difference does it make to the customer experience?

Here’s everything you need to know.

1. Is It Compulsory For Wallet Users To Switch To The Payments Bank?

No, your current Paytm Wallet will now move to Paytm Payments Bank Ltd. in the same capacity, that is, a Know Your Customer (KYC) wallet will remain a KYC wallet and a minimum KYC wallet will continue as such and so on. But if you have not used your wallet in the last six months and have zero balance, you will be required to log in to your wallet again to move to Paytm Payments Bank.

2. Can You Use Paytm For Uber Rides Even If You Don’t Want A Payments Bank Account?

Why not? This doesn’t change at all. If you hadn’t done your KYC when Paytm was just a wallet, then it means you can store up to Rs 20, 000 for all payments. In case you had done your KYC, you can store up to Rs 1,00,000.

3. Does Your Wallet Automatically Get Converted To A Bank Account?

No, your wallet will just operate under the Paytm Payments Bank and continue to function in exactly the same way. Only now, along with the wallet, you can also open a savings or current account with Paytm Payments Bank.