Digital Wallet and e-commerce company Paytm launched its payments bank with zero charges for online transactions and no minimum balance required. The company is also offering a 4 per cent interest per annum on deposits. Vijay Shekhar Sharma, chairman of 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.”
Paytm Payments Bank accounts at start will be available on an ‘invite-only’ basis. The company will roll out its beta banking app for its employees and associates. CurrentPaytm customers will be able to send a request for an invite by going to its website or through the Paytmapp and PresentPaytm wallet will automatically move to the Paytm Payments Bank. The Paytm walletUsers will be able to use their wallet in the same way as before. However, those who do not wish to continue with the payments banks will have the opt out by sending a mail to its customer care service.
Things a Paytm customer would need to know:
- What is a Paytm payments bank?
A Paytm Payments Bank is a different type of bank that has been licenced by the RBI. By this Paytm can now accept deposits up to Rs1 lakh per customer in a wallet. The bank offers services like debit cards, mobile banking and online banking.
- Any interest rate on the deposits?
Yes, this new bank will be giving 4% interest on the deposits made by its customers if they agree to the terms and conditions of the company.
- Difference between Payments Bank and other banks?
Major difference is Payments Banks cannot lend money to customers. But, they can partner with other banks to offer financial products like loans, insurance, mutual funds etc.
- Can we transfer money to other bank accounts?
Paytm Payments Bank will provide online fund transfer services like IMPS, UPI andNEFT free of cost.
- Will the bank offer debit card services?
Yes, the bank will provide debit cards in partnership with RuPay cards but for an annual subscription fee of Rs 100.If you loss the card, you will have to pay Rs100 plus delivery charges to get it replaced. The bank will also provide a cheque book at a cost of Rs 100 plus delivery charges for 10 cheque leaves.The first five ATM transactions will be free in non-metro cities. After that, customers will be charged Rs 20 per ATM withdrawal.
- How will Paytm Payments Bank earn to give interest on deposits?
The company will become a marketplace for several other financial products and will earn commission on their sale.