Introduction
Paytm is the first company to introduce a digital wallet service in India. Paytm Wallet payments are acceptable at 12 million merchants and on almost all third-party apps and shopping websites.
There is always confusion between Paytm Wallet and Paytm Payments Bank about how they are different from each other.
In this blog post, we’ll discuss everything related to the Paytm wallet and the Paytm Payments Bank and their benefits. Also, what is the difference between mini and full KYC? So let’s dive deep into everything related to Paytm Wallet and Paytm Payments Bank.
Table of Contents
What is Paytm wallet?
Paytm Wallet is the first and largest digital wallet that is approved by the RBI. Paytm Wallet is actually provided by Paytm Payments Bank Limited. Paytm Wallet is like a digital pocket in which you can load money by UPI, debit or credit card, net banking, etc. and then spend it on recharge and bill payments, ticket booking, third-party applications, and online shopping.
What is Paytm Bank?
Paytm Bank, or Paytm Payments Bank, is a digital bank account that is provided by Paytm to its full KYC users. Paytm Payments Bank provides all services that a bank account provides, like debit card, chequebook, UPI money transfer facilities, interest on account balance, etc. To activate this account, you just need to be a full KYC Paytm user and then apply for Paytm Payments Bank.
How is Paytm Payments Bank different from other banks?
- Paytm Payments Bank is a digital bank, so you don’t need to submit any paperwork or registration form; you just need to be a full KYC Paytm user.
- There is no branch of Paytm Payments Bank; everything is online.
- You’ll get a virtual debit card; if you want a physical one, you can order one.
Paytm Wallet vs. Paytm Bank
| Paytm Wallet | Paytm Bank |
|---|---|
| It’s a digital wallet in which you can load money from different payment methods and then use it where Paytm payments are accepted. | It’s more like a bank account with no branch and acts as a digital bank account. |
| You can load money here by UPI, debit/credit card, or net banking. | You can load money here by just bank transfer. |
| There is no interest if you hold money here. | Interest Rate: 2% per annum, payable monthly. |
| Wallet balance limit is 1 lakh Rs for full KYC and for mini KYC monthly maintaining balance is 10,000 RS. | After reaching the 2 lakh amount, your money will automatically be converted into FD, so you can hold a maximum of 2 lakh in your savings account. |
| Paytm Wallet transit card is available in the wallet section for debit card transactions by using the Paytm Wallet amount. | A virtual visa card is available for this savings account. |
Paytm Wallet Minimum KYC vs. Full KYC
| Paytm Wallet Minimum KYC | Paytm Wallet Full KYC |
|---|---|
| This can be done by just submitting the adhar card and pan card. | This can be done via video KYC, at a KYC centre, or by a KYC agent at your home. |
| KYC is valid for 24 months. | There is no validity, which means lifetime access. |
| You can add up to Rs. 10,000 in a month. | After full KYC, the monthly limit is 1 lakh. |
| You cannot transfer the amount available in your Paytm wallet to a bank. | Paytm wallet-to-bank transfer is available with absolutely no charge. |
| With a minimum KYC, you can’t open a Paytm Payments Bank savings account. | You can open a Paytm Payments Bank savings account instantly. |
| You can’t send money to another Paytm wallet. | There are no restrictions or charges for sending money from Paytm Wallet to another Paytm Wallet or bank account. |
| The merchant payment limit is 10,000 rupees monthly. | There is no limit. |
What are the advantages of using Paytm Wallet and Paytm Bank?
Paytm Wallet Advantages
- Safe, secure, and RBI-approved.
- Convenient and fast.
- Exclusive cashback offers.
- Instant Refund.
- Supported on almost every 3rd party app and merchant.
- Zero charges on transfers.
- 24×7 customer support.
- Cash deposit points are available.
Paytm Bank Advantages
- Zero-balance account. There is no need to maintain any amount.
- 2% annual interest on the amount.
- A fixed deposit facility is available with an interest rate of up to 7.5% annually.
- Virtual debit card, which is supported everywhere.
- UPI facility.
- 24×7 customer support.
- Exclusive cashback offers.
- RBI-approved, safe, and secure.
Conclusion
Paytm is most popular and widely used for digital payments like recharge and bill payments, ticket booking, FASTag recharge, 3rd party app payments with huge rewards, and cashback points.
Paytm has contributed a lot to our digital transactions and economy, so if you are not aware of Paytm wallet and Paytm bank, then I hope this blog post helped you understand everything related to Paytm wallet, Paytm Payments Bank, minimum KYC, and full KYC.
If you think something is missing here, then let us know in the comment section below. Thank you.
FAQs
Are Paytm Wallet and Paytm Payments Bank the same?
No, Paytm Wallet is a digital wallet, while Paytm Payments Bank is a zero-balance-savings account in which you can earn interest for holding amounts in it.
Which one is better, Paytm Wallet or Paytm Payments Bank?
It depends on your requirements. If you want a bank account instantly, then Paytm Payments Bank will fulfil all your requirements. On the other hand, Paytm wallet is a digital wallet that can be used for all digital transactions.
Can I use a Paytm wallet without a bank account?
Yes, to set up a Paytm wallet, you just need to complete KYC, whether mini or full.
Can we use a Paytm wallet without KYC?
No, to use the Paytm wallet, you need to complete at least a mini KYC, which can be done instantly by submitting documents.
What is the minimum balance required at Paytm Payment Bank?
There is no requirement to maintain a minimum balance in Paytm Payments Bank because it is a zero-balance savings account.
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