Got the answer from here Paytm Payments Bank Who are Classic customers?
Customers are categorised as Classic customers on the basis of an analysis of their account usage patterns. A customer whose account is flagged upon observation of anomalous activity conducted such as circumvention of wallet to bank charges (as mentioned in Paytm Payments Bank) while transferring money from wallet to bank - will be categorized as a Classic customer. Who are Privilege customers?
All customers who are not categorised as Classic customers, as mentioned above, will be categorised as Privilege customers.
lol not really. the amount should be debited right away while adding to wallet. Paytm is legally obliged to inform every customer's regarding this. I didn't receive an email or text. I added 2500 via amex just now. Paid a merchant 900 , no fee , nothing.
I am guessing this is only for those who missuse Paytm services (like adding money and then transferring to bank for RP , and finding tricks to do it free.