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New category in Paytm allows users to accept Rs. 50,000 in bank accounts

Move is in line with the RBI circular on Special Measures to incentivise Electronic Payments

ANI  |  New Delhi 

Advertisements of Paytm, a digital wallet company, are seen placed at stalls of roadside vegetable vendors in Mumbai. Photo: Reuters

has announced the introduction of a new category of self-declared merchants who can accept payments up to Rs 50,000 directly in their bank accounts. This move is in line with the (RBI) circular on dated Nov 22, 2016.

To self-declare as merchants, one needs to tap on 'Accept Payment' in the updated app, select 'Bank Account', enter bank details and confirm. Next is a self-declaration where the merchant confirms that he or she is the owner of a business and wants to accept payments directly in his or her bank account.

Post-confirmation, the merchant's bank account would be linked to his or her account and can start accepting payments directly in his or her bank account. A self-declared merchant can accept payments up to Rs 50,000 in a month. Wallet balance of a self-declared merchant should not exceed Rs 20,000 post which, the amount is settled directly to the merchant's bank account.

"We are on a mission to bring the benefits of digital payments to every merchant in the country. With this new enhancement, the aim is to offer our merchants greater flexibility in handling their money while presenting them with a quick and affordable merchant payment system. We are confident this will enable millions of small and medium merchants to register with us and instantly start accepting digital payments," said Sr. VP Paytm, Nitin Misra.

Merchants across India can start accepting Paytm at zero extra cost. Currently, all Paytm users can transfer money from Paytm to their bank account at zero percent fee till 31st December 2016. With the launch of the Paytm Payments Bank, the company has promised to allow its users to transfer money from Paytm wallet to their Paytm Payments Bank Account at zero per cent.

The company is confident that the option to transfer money directly into their bank account is likely to introduce thousands of new merchants to join the Paytm ecosystem.

First Published: Wed, December 21 2016. 12:40 IST