Since the demonetization, digital wallets like Paytm has been in the news for every good reason. So lets start with the question. What is a digital Wallet?

According to Wikipedia, a digital wallet refers to an electronic device that allows an individual to make electronic transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet.

Paytm Wallet

Paytm is one of India’s first mobile payments and commerce platform. It started with online mobile recharge and bill payments and has an online marketplace today. In a short span of time Paytm has scaled to over 164Mn registered users and more than 90Mn monthly transactions. Paytm is the consumer brand of India’s leading mobile internet company One97 Communications. One97 investors include Ant Financial (AliPay), SAIF Partners, Mediatek, Sapphire Venture and Silicon Valley Bank.

Download Paytm App from App Store available for IOS, Android & Windows.

Paytm is accepted at over 15 lakhs merchant locations online & offline.

Below is a quick overview on the security features & various fees related to your Paytm Wallet:

Security Features:

  1. Your Paytm ID + Password alone are not enough to access your Paytm Wallet. Even if someone takes your Paytm ID & Password, it is not possible to login, as OTP (One Time Password) is delivered to your registered mobile number when logging from a new device. So the only way to access your account is to use the combination of your Paytm ID/Password + Your own device or New Device with OTP to your registered mobile number.
  2. App Lock Password: You can now enable your phone’s default screen lock/Pin/Password/Pattern/Fingerprint as your 2nd level of security to access Paytm. You will be asked to reconfirm you Pin/Password/Pattern/Fingerprint before you can make a payment using Paytm Wallet. This deters any unauthorized use of your Wallet Account.
    1. Set the Phone’s default Android security password if not already done. Go to your Phone’s Settings > Security > Screen Lock > Choose Screen Lock. You can select Pin, Password, Pattern or Fingerprint to protect your phone.
    2. Open the updated Paytm App & click on “Pay” or “Passbook”. You will be prompted to enable this optional feature. If you are not logged in then you will be asked to login first to enable this App password
    3. Click on Add Security Feature. You will be asked to reconfirm your Phone’s Pin/Password/Pattern/Fingerprint depending on what you selected as your default protection. Once confirmed, your new App Password is now set
    4. Now next time when you click on “Pay” or “Passbook”, you will be prompted to input your App password you have just enabled
    5. In case you do not want to use this feature anymore, you can disable it as well. To disable, open Paytm App, Go to Profile > Security & Settings > Android Security Feature > Slide it off. You will be prompted to reconfirm your Pin/Password/Pattern/Fingerprint to disable it

Paytm

Various Fees associated with your Paytm Wallet:

All Paytm users can transfer money from Paytm to their bank account at 0% fee (till 31st December 2016). And once we launch Paytm Payments Bank, we will ALWAYS allow you to transfer money from Paytm wallet to Paytm Payments Bank Account at 0% even after 31 Dec’16. This includes all KYC & Non-KYC users & merchants:

  1. Paytm Wallet to Paytm Wallet (When you Pay using Paytm to some other Paytm user): Lifetime 0%
  2. Money Transfer from Paytm Wallet to Paytm Payments Bank Account: Lifetime 0%
  3. Money Transfer from Paytm Wallet to Any other Bank Account: Applicable Charges Applied by your Bank
Nature of Transaction Payment Charges
Loading money into wallet Nil
Purchase at Merchant site Nil
Wallet to Wallet Transfer Nil
Wallet to Bank Transfer – KYC Customer 1%
Wallet to Bank Transfer – Non KYC Customer 4%

Refunds & Transfer to Bank Timelines:

The Paytm users will transfer money from Paytm Wallet Account to any Bank account. Here is a quick overview on approximate timelines & cause of delay in some cases.

Whenever a user selects “Send Money to Bank Account” from Paytm wallet, the refund request is immediately processed. Money is instantly sent to your bank. In most cases, money should reach your account instantly but in some cases it gets delayed due to reasons mentioned below:

  1. Bank networks are down / are not responding: This is a very common roadblock that we face while transacting online. Bank networks are not responding when we initiate a request. It could be due to downtime or network fluctuation at their end. In such cases, Paytm keep retrying several times for 3 days. Most of the cases are resolved within 3 days period but in some extreme cases, there might be no response from the bank side even after 3 days. In such cases, Paytm informs the customer and return the money back to wallet instantly.
  2. Bank/NPCI Time Out: Time out at Bank/NPCI (National Payment Council of India) which processes IMPS money transfer sometimes leads to pending refunds. In such cases, Paytm will continue to retry till the refund is successful. Even in such cases, it can take up to 3 days for actual status to be given back. Paytm will continue to inform the user of any potential delay due to refund status not returned.
  3. Refunds in cases of failed orders: If you have placed any order using Paytm Wallet and for some reasons, refund is being processed then Paytm will allow you to take the money back from the original source using which the payment was made. For example, if you made an order using Debit Card/Credit Card or Net Banking then Paytm will attempt to send the money back to the same source.

In case of Debit/Credit Card & Net Banking transactions, we instantly initiate the refund to the acquiring bank which then takes up to 24–48 hours to send that to the Issuing Bank. We get a reference number (ARN/RRN) from the bank which we immediately inform the customer. This number signifies that bank has acknowledged the refund. Issuing Bank (Bank which has issued you the card) can take up to 7 days to reflect that money back into your account. So we highly recommend that you reach out your bank immediately with the ARN/RRN given by Paytm. We have seen cases where your bank takes up to 21 days to put that money into your bank account. Since Paytm releases the money instantly, we suggest that you constantly follow-up with your bank thereafter.

Paytm Refund Process

The Refund Process: Bank can take anywhere between 2 to 21 days to process refunds

Now Send Money from Paytm to Bank Account at 0%, various Usage Limits & Fees

All Paytm users can transfer money from Paytm to their bank account at 0% fee (till 31st December 2016). And once Paytm launches Paytm Payments Bank, the transfer of money from Paytm wallet to Paytm Payments Bank Account will be at 0% even after 31 Dec’16.

This includes all KYC & Non-KYC users & merchants. All Non-KYC users were earlier charged 1% which has now been reduced to 0%.

Usage Limits:

  1. When you Sign Up on Paytm, a wallet gets created for you in which you can add up to Rs. 20,000/- in a calendar month. This is as per RBI regulations. As a result there is a cap on how much you can spend. Also, there can be delays in getting cashback if the monthly limit of adding Rs. 20,000 gets exceeded.
  2. You can become a Paytm VIP customer for FREE by getting your KYC (Know Your Customer) done and store up to Rs. 1 lakh in your wallet.
  3. You can transfer up to Rs.25,000 per month from Paytm to your Bank Account as per the RBI regulations. This limit applies to minimum KYC (Rs.20,000) wallet & Full KYC (Rs.1 lakh) wallet.
  4. There is no limit in taking money back to source. For example, if you have added Rs.30,000 using credit card and later want to take the money back, you can send this money back to your credit card. Rs.25,000 limit does not apply here.
  5. The minimum amount to send to the bank is Rs 100.
  6. You can only send Rs.5000 per transaction.
  7. New Paytm customers have to wait 3 days before sending money to a bank account, however, if KYC formalities have been completed, then they can send money to any bank account immediately without any waiting period.

In case of any queries, write to paytm.com/care OR reach out to customer help line 9643–979797 for further support.

Article Sources:

https://blog.paytm.com/now-send-money-from-paytm-to-bank-account-at-0-2c0aea6c3462#.p8i5xdnh7

https://blog.paytm.com/know-more-about-your-paytm-wallet-security-features-various-fees-refunds-306df50313fd#.2lvwg5e78

https://blog.paytm.com/when-you-transfer-money-to-bank-account-from-paytm-it-is-initiated-instantly-946908425efc#.i1x289dgx