WhatsApp message about Paytm to stop working from January 15 is a hoax

A rumour spreading around on social network and chat platforms about Paytm to stop working from January 15, 2017 is a hoax. The message spreading states that if you have money in your Paytm wallet, you should either use it or get it transferred to your bank account before January 15, or else forfeit it. The hoax message also claims since Paytm is converting into a bank post January 15, you will not be able to transact with your Paytm wallet money.

The above message circulating on WhatsApp is a hoax.

The message is not true and it one should completely relax as your money will not be blocked or transferred anywhere. The digital wallet service recently announced that they will be converting into a payments bank after receiving a bank licence from the Reserve Bank of India. The said move by Paytm with the user’s account is just a ‘transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd,’ and you have the option to opt out from the Paytm service altogether, if you wish to.

The message includes a highlighted area (marked with a pen) of the public notice in a local newspaper.

The message highlighted informs the recipient that he will not be able to transact with the walet money.

The company released statement today in which it said that as per the directions of RBI, the company will be transferring its wallet business into payment bank entity after receipt of necessary approvals. The Paytm Payments Bank will start under a Payments Bank licence awarded to Vijay Shekhar Sharma.

On December 6, 2016, Paytm released a notice on their blog stating, ‘Your Paytm wallet will continue to work as it is, and infact, will become more powerful.’

“As per RBI guidelines, your Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank. Till now they were issued by One97 Communications Limited. This will happen automatically, and Paytm users do not need to do anything additional. Our customers will continue to use all the services provided by the Paytm Wallet, and enjoy all the benefits . Your Paytm wallet will work as it is, even after 15th January. Log in details, wallet balance and user experience will remain the same. Your Paytm Wallet experience will remain the same for all current use cases such as paying at stores, paying for Uber rides, ticketing, fuel, etc,” Paytm said on its blog. “Not just that, Paytm Payments Bank will also soon bring additional benefits such as a bank account, chequebook and a debit card. You will also earn interest on the money available in your account,” it concluded.

Paytm Payments Bank Limited (PPBL) is 51 per cent owned by Vijay Shekhar Sharma and 49 per cent ownership is with One97 Communications Ltd.

In order to rubbish the rumours and hoax messages spreading on different social networking platforms, Paytm said, ‘There are some rumours circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account.’

Paytm users can relax as the money you hold in your digital wallet will not be blocked and you shall be able to use the service as before. Paytm, on its blog has also answered a few generic queries, which could give you some more information about the new change.

What happens to my current Paytm Wallet?

It will be transferred to the Paytm Payments Bank Limited as it is, i.e. KYC Wallet as KYC Wallet and minimum KYC Wallet as minimum KYC Wallet

What happens to my money in the Paytm Wallet?

Your money is absolutely safe in the Paytm Wallet. It is always yours and you will never lose it. If you have any balance in your current Paytm Wallet, it will reflect in your new Paytm Payments Bank Wallet

If your Wallet has been inactive for the last six months and has zero balance, it won’t be transferred to the Paytm Payments Bank Wallet unless you specifically give consent for the same while logging into the app, web or by e-mail.

Does this mean, I get a bank account with Paytm Payments Bank?

No. This is just a transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd. Once we launch the bank, you will be given an option to open a separate bank account with us.

Can I move my money to any other Bank from Paytm Payments Bank Wallet?

Yes, you would be able to send money to any bank account from your Paytm Payment Bank Wallet.

Is it mandatory to open an account with Paytm Payments Bank once it is launched, to continue using the wallet?

You are not required to open an account with Paytm Payments Bank to use the wallet.

Can I opt out?

In case you choose not to continue to enjoy the benefits of your Paytm Wallet, please email us at care@paytm.com or log in to Paytm.com/care to notify your choice of opting out and redeeming your balance by a one-time transfer to your own bank account. Do indicate the account holder’s name, account number and the IFSC Code of the Bank where you wish to redeem the money.

Do I have to pay any fees for this transfer?

You do not have to pay any fee for this transfer.