Paytm has launched ‘Pocket Money’ feature. Now even children without bank accounts will be able to make UPI payments. Parents can keep an eye on their kids’ expenses in real-time by setting a monthly limit of up to ₹15,000.
Now parents will not have any problem in giving money to their children digitally for buying goods or for commuting. The country’s biggest digital payment company Paytm has come up with a new feature through which even those children who do not have their own bank account will be able to make digital UPI payments. The name of this new system is ‘Paytm Pocket Money’. This feature gives children the freedom to make their own money-related decisions, while also giving parents complete control over their expenses and monitoring them in real-time.
What is Paytm Pocket Money?
Nowadays, teenagers use UPI extensively for school-college canteens, metro, taxi fare, mobile recharge and online shopping. But, due to not having their own bank account, they often have to call their parents, ask for OTP or send QR code on WhatsApp. Paytm Pocket Money is the solution to these problems. Through this, parents can send money securely from their account to the Paytm app on their children’s phone.
How does it work? And what are the limits?
Parents can add their children through ‘UPI Circle’ of National Payment Corporation of India (NPCI). Its salient features are given below:
Monthly Limit: Parents can set a maximum limit of up to Rs 15,000 every month for their children.
One time transaction limit: Children can make a maximum payment of only Rs 5,000 at a time.
Account: This service is available on both savings and current bank accounts.
Restrictions: International payments cannot be made through this system nor cash can be withdrawn from ATM.
safety first priority
To make children’s money transactions more secure, Paytm has provided many advanced security features.
Initial Control: Only Rs 500 can be transacted in the first 30 minutes of feature activation and a maximum of Rs 5,000 can be transacted in the first 24 hours.
Device Lock: Children’s phones must have a device lock (PIN, pattern or fingerprint).
Stop whenever you want: Parents can change the limit of this service at any time using their Paytm UPI PIN or turn off this feature completely for the child.
Account of expenses: Parents can see complete information about where their children are spending money in their app.
‘Spend Summary’ to manage money properly
Another special thing about Paytm Pocket Money is that it is linked to ‘Paytm Spend Summary’. Whatever transactions the children do, the app automatically divides them into different categories (e.g. food, travel, shopping). Paytm says this will help families inculcate the habit of spending money wisely in their children from an early age.