Paytm Payments Bank has announced that it will have zero charges on all online transactions and customers can open accounts with zero minimum balance. The announcement comes amidst government’s effort to go cashless and drive online transactions in the country.
Paytm says account holders of Paytm Payments Bank can open zero-fee accounts and no minimum balance will be required to maintain the account. The digital bank will give minimum 4 percent interest on normal savings and up to 7.03 percent by keeping money in sweep out fixed deposit. As opposed to normal banks, Paytm Payments Bank will not charge any penalty on breaking sweep-out fixed deposit.
Paytm Payments Bank account holders are eligible to free personalized RuPay digital debit card for making online purchases and cash withdrawal at any of the ‘Paytm Ka ATM’ banking outlets across India. The physical debit card can be used to withdraw money from any ATM in the country.
With India making rapid adoption of online transactions, Paytm Payments Bank has announced no fee for digital transactions carried out using IMPS, UPI, NEFT and RTGS. The account holders at the digital bank are also eligible to free insurance cover of up to Rs 2 lakh in the incident of death or permanent total disability.
Paytm Payment Bank accoount can be opened easily by updating Paytm app to the latest version. On the latest version, users will be greeted with a popup about the bank where users need to tap on the ‘Proceed’ button in order to set a passcode and set a nominee. The nominee details will include full name, relationship, age and date of birth, address. Once the nominee is appointed, the users need to enter their 12-digit Aadhaar number followed by PAN number and address for verification.
Once the details are entered, a Paytm representative will visit the provided address for completing KYC after which the Payments Bank account will be activated. Paytm says the Payments Bank has been designed to help consumers achieve financial inclusion in the country. It aims to bring half a billion Indians on to the mainstream financial economy.