Paytm Payments Bank has finally gone live in India, making it the third Payments bank in the country, after Airtel and India Post. Payments bank is a differentiated bank which allows customers to open a savings account for a deposit amount of up to Rs. 1 Lakh. The first physical branch of Paytm Payments Bank will go live in Noida today.
Initially, the service will be available on an invite-only basis. In the first phase, Paytm Payments bank will roll out the beta version of the banking app for its employees and associates. In order to get an invite you will have to log onto www.paytmpaymentsbank.com or request an invite via latest version of the Paytm app.
Paytm Payments Bank will offer accounts with a Zero balance requirement. For savings accounts, the bank will offer an annual interest of 4% (payable monthly) and also offer a cashback of Rs. 250 to its first million customers after they deposit a total of Rs. 25,000 in their bank account. Every online transaction such as Immediate Payment Service (IMPS), Unified Payment Interface (UPI), National Electronic Fund Transfer (NEFT) etc. will be offered free of charge.
The bank will provide Rupay Debit Card to its customers at an annual subscription cost of Rs. 100 plus delivery charges. In case of loss of card, you will have to pay Rs. 100 plus delivery charges to get it replaced. The bank is also providing a Cheque book at a cost of Rs. 100 plus delivery charges for 10 cheque leaves.
The cash withdrawal charges using the ATM is similar to any other major bank of the country. You will get 5 free transactions in non-metro cities and 3 free transactions in metro cities, after which you will be charged Rs. 20 for each cash withdrawal and Rs. 5 for non-financial transactions like taking out a mini statement.
Online passbook and Email statements will be offered free of charge, but if you need a physical statement from the bank, you will have to pay Rs. 50 plus delivery charges. It is free for Women, Senior Citizens and Armed Forces Personal.
The company is setting up KYC centers across India to help customers get KYC done and make themselves eligible for a Payments Bank account. The firm said it will move all active wallet accounts on the Paytm app to the payments bank.
The bank plans to expand its physical presence to 31 branches and 3,000 customer service points in the first year. The company is targeting 500 million customers by 2020.
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 in to risky assets.”
Renu Satti, chief executive at Paytm Payments Bank, said: “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.”