Paytm Wallet to transfer to payments bank, but m-wallets will keep working

Digital payments firm Paytm on Tuesday said its wallet business will soon be transferred to its payments bank but quashed social media rumours that the m-wallets will stop working after January 15.

"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 said in a blog post.

The hoax message claims that since Paytm is converting into a payments bank post January 15, users will not be able to transact with their Paytm wallet money, it said.

The company noted that the Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank automatically but added that the m-wallets will work even after January 15.

Stating that this is just a "transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd", Paytm said customers will be given an option to open a separate bank account when the bank launches its services.

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

"After the movement, we will be able to offer our customers a host of new services and features such as savings accounts where they will earn interest as well in addition to being able to avail all the current services," a Paytm spokesperson said.

Also, login details, wallet balance and user experience will remain the same.

In case users choose to discontinue their Paytm wallets, they can send an email to care@paytm.Com or log in to Paytm.Com/care to notify the choice of opting out and redeeming the balance by a one-time transfer to their own bank account.

In case a user's wallet has been inactive for the last six months and has zero balance, it will not be transferred to the Paytm Payments Bank Wallet unless they specifically give consent for the same while logging into the app, web or by e-mail.