Ten million people have signed up to open accounts with Paytm Payments Bank within a fortnight of the beta app going live. Though that is a fraction of Paytm’s overall user base of 220 million, it is a decent start. Paytm Payments Bank, which started operations in Noida in May, plans to expand to 31 branches and reach about 3,000 customer touch-points in the country, ET reported. The fintech startup is yet to push its banking services aggressively.
“Paytm customers are already using Paytm wallet of Paytm Payments Bank. We have not pushed consumer beta for our savings account sign up aggressively, and 10 million organic sign ups without any marketing on a limited rollout is a very encouraging response,” Renu Satti, CEO of Paytm Payments Bank, was quoted as saying. Satti, who earlier served as Paytm’s VP of Business, took charge of its payments bank in May — nearly a year after the RBI gave a licence to Paytm to start a payments bank. ALSO READ: Paytm Payments Bank: How to open an account and everything else you need to know
Reports suggest that the payments bank accounts are witnessing higher average deposits as compared to the mobile wallets. And Paytm expects that it would go up further as more Indians warm up to the concept of payments bank accounts as a viable mode of saving. “Customers are gradually exploring the convenience and benefit of their savings account with Paytm Payments Bank and we expect deposits to increase in future,” Satti added. ALSO READ: Paytm Payments Bank: Here’s how it compares with Digibank, Airtel Payments Bank and India Post Payments Bank
At present, Paytm Payments Bank offers a 4 percent interest rate and cashback on deposits. Additionally, there are zero charges on online transactions and no minimum balance requirement, unlike in traditional banks. Paytm has also tied up with the state-backed NPCI to offer RuPay digital debit cards to every Paytm Payments Bank customer. The RuPay debit card comes with a free life insurance cover up to Rs 2 lakh. Paytm has also said that going ahead it will collaborate with several banks to roll out more advanced services like term deposits and retail loans.