Digital payment wallet service Paytm on 23 May 2017 launched its Payments Bank operations by launching its first physical branch in Noida.
Paytm Payments Bank will be the first bank in the country to offer cashbacks on deposits. The bank will now be expanded to 31 branches and 3000 customer service points in the first year.
With this launch, there are now three payments bank operational in the country, the other two being Airtel Payments Bank Ltd and India Post Payments Bank Ltd.
All about Paytm Payments Bank
• As a Payments Bank, Paytm will be able to accept deposits up to Rs 1 lakh per customer in savings or current accounts.
• Customers will also be offered zero charges on all online transactions and no minimum balance requirement.
• For Savings Accounts, it will offer an interest of 4 per cent per annum in line with the interest rates of all leading commercial banks. It will also offer current accounts to its millions of merchants.
• It will offer Rs 250 cashback to customers depositing Rs 25000 to Payments Bank account.
• It will also offer other services like Debit Cards, Online Banking and Mobile Banking.
• It cannot offer financial products of its own, but can partner with other banks to offer such services.
Paytm Payments Bank accounts will initially be available on an invite only basis. Paytm customers can request an invite by going to www.PaytmPaymentsBank.com or on the Paytm iOS app.
In the first phase, the company will roll out its beta banking app for its employees and associates.
What will happen to Paytm Wallet?
Paytm Wallet will now move to the Paytm Payments Bank Limited. However, customers can continue to use the Paytm Wallet as before without any changes. There will be no impact on cashflows or the mode of accepting payment.
The wallet will not accrue any interest unlike money in the savings bank account. To earn interest, customers will need to open a Paytm Payments Bank savings account.