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Paytm Money Demat Account

In this article, you will find all information about the Paytm Money Demat account.

Before we begin, let's understand what a Demat account is. If you look at the history of stock trading in India, the transfer of shares included a lot of paperwork. For each share that was traded, a physical certificate had to be created. The demat system was created in 1996 to improve this highly inefficient process.

A Demat account stands for dematerialization account and allows us to hold the investments in an electronic format. It acts similar to a bank for holding investments such as shares, bonds, securities, etc. It is currently compulsory to open a Demat account to trade in the stock markets such as NSE and BSE.

Paytm Money Demat account charges

Account Opening Charges Rs.300
Demat AMC (Annual Maintenance Charges) Rs.250 per Annum
Trading AMC (Annual Maintenance Charges) Free
Depository CDSL & NSDL

How to open Paytm Money Demat account?

  • Register on the official website of Paytm Money by providing your name, email address, and phone number. Alternatively, you can also contact us to get the best offers for a Demat account in Paytm Money.
  • After details are submitted to Paytm Money, a representative will call you to assist in opening your Demat and trading account.
  • You need to download the required forms, sign them, and courier them back to Paytm Money.
  • You also need to provide documents for identity such as Aadhaar Card, pan card, etc. Also, documents for address proof and income proofs are required, such as Bank Statement, Cancelled cheque, etc.
  • The best part is that you will be entirely guided by the representative who handles your account opening process. After completing the Demat account opening process, you will receive a username and password (over email and SMS) to login to Paytm Money trading platforms.

What are Paytm Money Demat Account Opening charges?

Paytm Money charges an account opening fee of Rs.300 in general for opening a Demat and a trading account. Please note that account opening charges can differ depending on the asset class. A Demat account is technically different from a trading account. Many people don't quite understand the difference. Paytm Money Demat account holds the investments, while the trading account enables you to buy and sell shares. So, a Demat account is almost always accompanied by a trading account. Some banks provide a 3 in 1 account, a combo of a savings account, trading account, and Demat account.

What are Paytm Money Demat Account AMC charges?

The other import charge related to the Paytm Money Demat account is the Demat AMC charge. Demat AMC charge refers to the annual maintenance charge that you need to pay for maintenances of the Demat account. Paytm Money charges Rs.250 per Annum as Demat AMC charge.

What are Paytm Money Trading AMC charges?

A trading AMC charge is a separate charge from a Demat account AMC charge and refers to the annual maintenance charge you pay to maintain your trading account at Paytm Money. Paytm Money charges Free as trading AMC charge.

Is Paytm Money Demat account CDSL or NSDL?

Paytm Money Demat account is maintained at CDSL & NSDL. By depository, we mean a financial institution that holds your certificates and securities. Paytm Money is a depository participant, or in other words, an agent of the depository. Paytm Money charges Demat AMC from you and pays it back to the depository source.

Different types of Paytm Money Demat Account

Paytm Money Demat account can be one of the three types

  • Regular Demat Account : This is for people who are Indian citizens residing in India.
  • Repatriable Demat Account : This is for Non-Resident Indians, also referred to as NRIs. A repatriable Demat Account has to be linked to an NRE bank account.
  • Non-Repatriable Demat Account : This is similar to repatriable Demat Account as it is also applicable for NRIs. However, the difference is that funds cannot be transferred abroad and it has to be linked to an NRO bank account.

Is Paytm Money Demat account free?

Paytm Money charges Rs.300 for trading and Demat account opening. There seems to be confusion regarding Demat account opening charges. A depository participant such as Paytm Money combines both the Demat account and trading account charges into a single charge called account opening charge. Even if the Demat account is free, you need to pay a small amount to open a trading and Demat account together in Paytm Money.

What documents are required for opening Paytm Money Demat account?

Paytm Money Demat account requires documents such as an Aadhaar card, pan card for identity proof. You also need to submit documents for address proof and income proof. So it's good to keep documents such as bank statements, a canceled cheque ready. Apart from documents, you might need to provide passport size photographs.

Is Aadhaar card required to open Paytm Money Demat account?

Yes, the Aadhaar card is one of the most important documents which serves as identity proof for Paytm Money Demat account. You might need to sign the Aadhaar card digitally.

Is a pan card required to open Paytm Money Demat account?

Yes, a pan card is mandatory for opening Paytm Money Demat account. SEBI enforces this. Whether you plan for a small or big investment, you are bound to provide a pan card for opening Paytm Money Demat account.