Paytm has finally rolled out its Payments Bank, which is an almost-complete banking solution offered by the company. The digital wallet and e-commerce service provider received the final license from RBI for the bank last week. With the launch, Paytm is transferring all wallets to the new Paytm Payments Bank. Also Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your moneyAlso Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
Under the new banking system, wallets and accounts will be two separate entities. In order to be a part of the banking system, the user will have to open a bank account with Paytm. Presently, the account opening is invite-only to begin with, and interested customers can simply visit paytmpaymentsbank.com or get an invite via the Paytm iOS app. Once they have the invite link, customers can open an account using their Aadhaar number and biometric credentials. Also Read - Ola to offer free oxygen concentrators to the needy
Paytm has done away with the account limit and there is no minimum required balance for all customers. Also, the company has an offer for the first million customers wherein on a deposit of Rs 25,000 (one time or in parts), Rs 250 cash back will be credited instantly to their account. Additionally, the bank offers the standard four percent interest rate on all savings accounts, though there is no interest offered to current account holders. Apart from no minimum balance, Paytm Payments Bank has also made all forms of transfers – like NEFT, RTGS, IMPS free of cost. ALSO READ: Softbank s $1.4 billion funding could finally help Paytm shed its Chinese company image
However, while the online transaction services are free, the bank will levy charges on most other services. Facilities like cheque book, debit card, passbook will be provided, but at a fee. There is also a cap on the number of free withdrawals that an individual can do with the Rupay Debit card provided by Paytm. While virtual debit cards are free, the physical debit card and cheque book are priced at a fee of Rs 100. Similarly, online passbook and e-statements are free but physical deliverables are chargeable at Rs 50 each.
Presently, Paytm Payments Bank does not have loan services or term deposit options unlike traditional banks, but the company plans to soon roll out those services too. Paytm will roll out 31 branches and 3,000 customer service centers in the first year of operations and by 2020, the payments bank is looking at bringing 500 million customers on board. Paytm will not be investing in the market or in risk-based bonds but rather play it safe by investing in government bonds. ALSO READ: Paytm ties up with MMTC-PAMP to offer digital gold at investment as low as Re 1
Speaking at the launch, Vijay Shekhar Sharma, Chairman Paytm Payments Bank said, RBI has given us an opportunity to create a new kind of banking model in the world. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. None of our deposits will be converted into risky assets .
Renu Satti, CEO Paytm Payments Bank added, We are very excited to launch Paytm Payments Bank and bring financial services to unbanked segment of Indians. Our ambition is to become India s most trusted and consumer-friendly bank. Leveraging power of technology, we aim to become the preferred bank for 500 million Indians by 2020 .