Latest News on 22nd May 2017, Paytm on Tuesday, the largest digital payments platform owned by One97 Communications, has launched Payment Bank which assures Cash Back on every deposit. The Payment Bank was unveiled only after Paytm received an approval from the country’s apex bank, Reserve of Bank Of India. After Airtel and India Post, Paytm is the third one to create a payments bank.
Customers will not be levied any charge on all online transactions and there is no need to keep minimum balance in paytm payments bank. Paytm will offer an interest of 4 percent per annum for its savings accounts holders. Current account facility will also be offered to millions of merchants.
The parent company One97 Communications has decided to invest Rs 400 cr initially to execute this plan. The account for Paytm Payments Bank will initially be available on an invite-only basis. The first physical branch will come up in Noida only offering benefits mostly to its north Indian customers.
In the initial year paytm will roll out 31 branches and 3,000 customer service points and it hopes to add 500 million customers to its payments bank by 2020.
As Paytm Payments Bank is here, you might be thinking what will happen to your e-wallet account? Some answers are here for you:
Is it necessary to switch to paytm payments bank?
All Paytm wallet users will be transferred to Paytm Payments Bank automatically unless the user denies it otherwise. The amount can be transferred to the user’s bank account after the user provides the name of the account holder, account number and IFSC code.
What is the procedure to open the Payments bank’s account?
You can login to www.paytmpaymentsbank.com or download the iOS app to get an invitation for account opening. Customers must submit e-KYC (Know your customer) documents while applying. In the beginning, Paytm will release its beta banking app for its employees and associates.
Will there be balance transfer facility?
Yes, there will be facility for balance transfer but, this facility is available only for paytm e-wallet users.
What will be the annual interest rates and, what will be the cash back percentage?
Paytm will offer 4% interest rates for all savings accounts. Every customer on opening a Payments Bank account will get a cash back of Rs 250 as soon as they deposit Rs 25,000 in their bank account.
The account can be opened at zero balance and every online transaction (such as IMPS, NEFT, RTGS) will not bear no charges.
Will the bank provide card services?
All customers will be offered virtual Rupay debit cards by Paytm and will also be provided physical card on request for withdrawing cash from any ATM in the country.
What is the maximum amount which can be deposited in the payments bank account?
A maximum amount of Rs 1 lakh can be deposited in payments bank by each individual customer and it can issue services such as ATM cards, net banking.
Payments banks will not be able to offer any kind of loan to its customers.
All Paytm users will be able to use their Paytm e-Wallet in the same way as they used to do. You can also close your e-wallet if you wish to do so.