Paytm Money to Continue? How to Transfer Shares & Mutual Funds

Recently after RBI laid a ban on Paytm Payments Bank, several users have been wanting to know if their funds in Paytm Money are safe or not. While it’s easy to close Paytm FASTag or your Paytm Payments Bank account, mutual funds in Paytm Money are not as widely addressed. So if you are a Paytm user with a demat account in Paytm Money and have been wanting to know if Paytm Money is banned? Or How to transfer shares or mutual funds from Paytm Money to another broker like Zerodha, Upstox, or Groww, then this article is for you.

First things first, Paytm Money is not banned as it doesn’t come under the Paytm Payments Bank Limited (PPBL)

Mutual funds in your Paytm Money account are safe and are not going to be affected by the recent RBI’s directives said Paytm on its official Twitter handle on 1st of February, 2024.

Additionally, the fintech unicorn company Paytm tweeted, “Your Paytm Gold Investments are completely safe and protected with MMTC-PAMP. This has no relation to the recent directives from RBI on Paytm Payments Bank”

So if you are wondering if Paytm Money is banned or what about your Paytm Gold Investment after the RBI ban, we hope this answers your concern.

Paytm Money mutual fund investment service offers several benefits from no transaction fee on investments & withdrawals to a free risk profile assessment report.

However, after the recent RBI ban on Paytm Payments Bank, some users are considering closing their Paytm Money account & transferring their demat shares & mutual funds from Paytm Money to another broker (though as mentioned above know that Paytm Money is not banned and will be available to the user after February 29th as well)

To close your Paytm Money account, you need to follow these steps:

1. Open your Paytm Money app

2. Go to “Portfolio”

3. Ensure there are no holdings or current positions (ongoing trades)

Don’t worry, we have shared steps below on how you can transfer your shares & mutual funds from one broker to another

4. Ensure your account doesn’t have any pending dues or funds account balance (withdraw if any)

5. Come back to the Home page of Paytm Money

6. Click on the profile icon in the top left corner of the screen

7. Select Customer Support

8. Select “To close my demat & trading account”

9. Enter your mobile number and DP ID (you can get your DP ID in your Paytm Money portfolio section. DP ID is the first 8 digits of your demat account number & Client ID is the next 8 digits)

10. Enter your reason for wanting to close the account

11. Once you submit the above details, you will receive a call from Paytm Money's customer care service

12. Answer the call & let them know you want to close both, your demat account & trading account

13. You will receive an email saying your demat account is disabled

14. In your customer support chat, you will also receive a message saying “You can come back to reactivate your Paytm Money account”

15. This is because they do not close your account in the first instance but only deactivate

16. Again put a message in the support chat saying “I want to close my demat & trading account permanently”

17. You will receive a message from customer support asking you to fill out an account closure form

18. You can find the Account Closure Form here - https://www.paytmmoney.com/stocks/customer/download-center

19. Fill out the form and email it to the email address shared by customer care (it might be exg(dot)support@paytmmoney(dot)com)

20. Make sure to tick “BO” and “DP” while filing the form

21. Attach the signed form in the customer support chat

22. You will get a confirmation message of your account closure

23. It takes about 7-10 working days for your account to be permanently closed

After the RBI ban on Paytm Payments Bank, some users who are concerned about the future of Paytm Money are looking for ways to transfer their mutual funds from Paytm Money to other brokers like Zerodha, Upstox, Groww, etc. If you are one of them, these steps can help you.

Before we begin, here’s an important note:

The CDSL EASIEST method of transferring shares & mutual funds from one broker to another might only work in case of transferring the shares/units between a CDSL-based broker to another CDSL based broker. The process of transferring shares & mutual funds from CDSL to an NSDL broker might require you to fill out a DIS form & submit it to your DP (Demat Account Provider). Don’t worry we have shared the steps on the same below as well.

• CDSL to CDSL transfer of shares can be done by CDSL EASIEST (online)

• For CDSL to NSDL or NSDL to CDSL broker, you might need to avail NSDL Speed-e facility

• The below steps are applicable for the transfer of shares/mutual funds from (your) one demat to (your) another demat account only

• For the transfer of shares from one demat account to a third party (another person), some charges might apply and the process can be slightly different which isn’t covered in this article

• Try to follow these steps during the trading days/working days and hours to avoid rejection or delay

• Ensure your PAN Card & Aadhar Card linked to your demat account is linked to your registered mobile number so that you can receive OTPs seamlessly

• The charges to transfer shares in an off-market transaction are 0.03% of the transfer value or ₹25 per ISIN, whichever is higher, + 18% GST. Clients must maintain the required balance for the charges to be debited.

• Paytm Money

• Upstox

• Zerodha

• Groww

• 5Paisa

• SBI Securities

• Fyers

• AngelOne

• Fisdom

• Bajaj Finserv

View the complete official list of CDSL brokers here - https://www.cdslindia.com/DP/List%20of%20CDSL%20DP's.html

• Aditya Birla Money

• Bank of Baroda

• Axis Bank

• Bajaj Capital

• Canara Bank Securities

• City Union Bank Limited

• ICICI Bank Limited

• Dhani Stocks Limited

• IDBI Bank Limited

• Kotak Mahindra Bank Limited

View the complete list of NSDL demat providers here - https://nsdl.co.in/speed-e.php

Method #1A:

Steps to follow to transfer shares or mutual funds from Paytm Money to another broker:

1. Log in to CDSL EASIEST here - https://web.cdslindia.com/myeasitoken/Home/Login

2. Enter your DP ID & Client ID (the first 8 digits of your 16-digit demat number are DP ID and the next 8 digits are your Client ID)

How to find your demat number in Paytm Money? 💡

• Open Paytm Money

• Visit Stocks Portfolio

• On the top right corner click on the hamburger icon

• Select Profile >> Account Details

• Scroll down to find your DP ID & Demat Number

3. Enter details like mobile number & OTP

4. Add a username

5. Choose your security question & appropriate answer

6. Don’t need to tick on “Account of Choice”

7. You have now successfully registered for your CDSL EASIEST account

Skip to point number 15 if you reach till here successfully.

If, for any reason, you are unable to register your CDSL EASIEST account, try following these steps (worked in my case). Here we will first register for CDSL EASI and then later on upgrade it to CDSL EASIEST:

Method #1B:

1. So first log in to your EASI account https://web.cdslindia.com/myeasitoken/Registration/EasiRegistration

2. For that enter your demat number

3. Password is PAN + DDMM (Date + Month of your birthdate)

4. Enter the OTP

5. Fill in account details like password and username (preferably use different credentials then what you did before)

6. Click on next >>> Grouping >>> continue

7. Once successful, now reset your password using the username and BOID, PAN Card, email, mobile no.

8. Once done, now you will receive a tentative password to use on your email

9. Enter that password and your selected username (an error might come saying the page isn’t working. Refresh the page)

10. Now set up a new password

11. You will now be successfully able to log in

However, this is your CDSL EASI account which is different than CDSL EASIEST. You now need to upgrade this CDSL EASI account to CDSL EASIEST. To do that follow the steps shared below:

12. In your profile, go to “Miscellaneous” >> “select Upgrade BO ID to EASIEST”

13. Enter the BO ID to which you want to transfer your shares or mutual funds (this new BO ID should be linked to the same PAN Card & Aadhar Card)

14. Your registration will remain pending for authentication for about 1-3 working days.

Once done, follow the steps given from point 20

Transfer of Shares and Mutual Funds from Paytm Money to Other Broker

15. Enter your trusted BO ID (the 16-digit demat number to which you want to transfer your holdings)

16. Wait for your authentication (happens instantly if it's a working day. Otherwise you might have to wait for 1-3 days)

17. Enter the OTP received on your registered mobile number of that new demat account

18. You will proceed to “Grouping” and click continue

(Be sure to go to “Miscellaneous” >> Change PIN if you used method #1 and haven’t set up a new PIN yet)

19. Visit “Account Details” to view all your shares, and mutual funds investments along with their ISIN, portfolio value, etc

20. Go to “Transactions” >> Setup >> Bulk Setup

21. Don’t edit anything else here apart from the following details:

22. Set up Execution Date >> Enter the present date on which you are doing this transaction

23. Enter Counter BO ID - the demat number to which you want to transfer your shares & mutual funds

24. Keep the rest of the details as is.

25. Scroll down to see “Entity Identifier” >> Select “NA.” Keep the rest of the details as is.

26. Scroll down below to find “ISIN Details” and on the right click on that “plus(+)” icon

27. Now you can add the ISIN of the shares you wish to transfer

28. Click on the “Account ISIN” button and simply click on the ISIN number of the share/mutual fund to which you want to transfer

29. Check the quantity

30. Select from the reasons available. You can choose “Gift” “Transfer to Own Accounts” or “Transfer between specified family members.” Note that a stamp duty fee & 18% GST might apply if you are transferring shares to a 3rd-party as mentioned earlier. 

31. Keep the rest of the details as is. Don’t modify anything else. Click on the “Ok” button.

32. Again click on the “+” icon to add other ISIN of the shares/mutual fund you wish to transfer

33. Once you are done with adding all the shares/mutual funds you want to transfer, click on “Verify”

34. You will receive a notification asking you to commit the same. Simply click on “Ok”

35. Tick all the shares /mutual funds you want to transfer and click on “Commit”

36. Enter the OTP to authenticate the transaction

37. Enter the 8-digit alphanumeric CDSL easiest PIN received on the registered email ID. 

38. Once done, you will receive a confirmation email about your transfer of shares/mutual funds

A Delivery Instruction Slip (DIS) can also be used to transfer shares from one demat account to another. However, this process has some limitations which we will talk about later on. So in a Delivery Instruction Slip method, you need to follow the given steps below to transfer your shares:

1. You need to fill out a Delivery Instruction Slip (DIS) form.

2. To do that you need a DIS booklet (which your broker should give you)

3. To receive a DIS booklet, you need to fill out a DIS Request form (ask your broker. In this case, Paytm Money)

4. Within 24-48 hours, you will receive your DIS booklet

5. Once you receive the DIS booklet, download & print the DIS form

6. Fill in details like your DP ID, BO ID, ISIN number of shares/mutual funds you wish to transfer, counter BO ID, Client ID, security name (stock name), the number of shares, etc

7. You can fill up to 5 ISIN/ number of shares/mutual funds in a single DIS form.

8. If you want to transfer more than 5 shares, you need to attach an additional DIS Annexure slip to the form

9. Sign the DIS slip (make sure the signature matches your registered PAN card & with your demat account)

10. Once done, submit your DIS Slip to your Demat Account Provider (DP)

11. Try to register your DIS Slip before 5:00 PM on a working day, to avoid any delay

Optional: To request an additional DIS booklet, you need to courier the DIS Annexure B form ([present on page of your DIS booklet) to your broker’s office

Important:

The above method is given for the transfer of shares from your one demat account to another. However, if you want to transfer shares to another person, a charge of stamp duty + 18% GST will apply and you will have to attach a CMR Copy.

So this was all about sharing if mutual funds from Paytm Money are going to continue or not. Additionally, if you wish to transfer your shares or mutual funds from Paytm Money to another broker, we have shared steps on that too (both, online and offline)

While Paytm Money is completely safe from RBI’s guidelines, the same can’t be said about Paytm FASTag. If you are a Paytm FASTag user, you might want to read our useful article on “How to Close & Port from Paytm FASTag?”

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