COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
Paytm launches payments bank: Here is your know-it-all guide

Paytm launches payments bank: Here is your know-it-all guide

If you use the Paytm wallet and wondering how this new lauch will impact you, here are all the details which you need to know.

BusinessToday.In
  • New Delhi,
  • Updated May 23, 2017 7:00 PM IST
Paytm launches payments bank: Here is your know-it-all guide

On Tuesday, Paytm announced the launch of its payments bank in India, with a public notice in all the national dailies. The firm also made an announcement about the same in a blogpost.

If you use the Paytm wallet and wondering how this new lauch will impact you, here are all the details which you need to know.

Advertisement

The immediate effect:

 

  • The launch of the Paytm bank is relevant for its customers as now the users can get almost every banking service that a conventional bank offers with their e-wallets.
  • All Paytm wallet accounts now, by default will be migrated to the new payments bank. However, if the user does not want to continue with the bank, then he/she has to opt out by writing a mail to help@paytm.com or visiting paytm.com/care.

But what is a Payments Bank and how does it work?

 

 

  • In 2015, the RBI had awarded in-principle approval to Paytm founder Vijay Shekhar Sharma to set up a payments bank along with 10 others. And now, Paytm has become the third entity after Airtel and India Post to launch the Payment Bank in India.
  • As a payments bank, Paytm can now accept customer deposits upto Rs 1 lakh per customer in a wallet, savings or current account and offer other banking services like Debit Cards, Online Banking and Mobile Banking.
  • To get a Paytm Payments Bank account, customers have to visit Paytm's Bank page, and then click on Request an Invite. The page will further ask a user to sign in to their Paytm account, after signing in, the user will be entitled to hold an account.

Thinking about the benefits?

 

Advertisement

 

  • To begin with, If you transfer more than Rs 25,000 into your Paytm payments bank account, you will get one per cent cashback, which is Rs 250, up to four times.
  • The bank claims to be India's first bank with zero charges on online transactions, no minimum balance requirement and free virtual debit card.
  • There is no minimum balance requirement for the bank account.
  • According to Paytm's website, physical services such as a chequebook, demand drafts, and debit cards, will be available from the Paytm payments bank, at a nominal fee.

Airtel vs Paytm:

 

 

  • Paytm is offering customers a 4 % interest rate, which is the lowest among the three. Airtel offers 7.3 per cent interest and India Post about 5.5 per cent annually.

One97 Communications Pvt Ltd, the holding company of Paytm will invest Rs 400 crore initially into the bank.

 

Advertisement

The firm aims to acquire 500 million customers in the next three years and will offer an interest rate of 4 percent per annum on deposits.

The first physical branch of the bank has been opened in Noida. The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year of operations, the company said.

Also watch:



 

 

Published on: May 23, 2017 2:57 PM IST
    Post a comment0