Paytm launches payments bank | Fusion - WeRIndia

Paytm launches payments bank

Paytm launches payments bank

Digital payments firm Paytm launched its payments bank yesterday.

It is the third entity to launch payments bank in the country, the first being Airtel payments bank followed by India Post.

Currently Paytm has nearly 220 million customers who use digital wallet services.

With the launching of payments bank, all the e-wallets will be shifted to the payments bank.

But, that does not mean your money will be in the payments bank and you will earn interest on it.

Your money will be just transferred from Paytm wallet to Paytm Payments Bank wallet.

You will have to convert your e-wallet account to a bank account. You can either choose savings account or current account.

Initially the payments bank will be available on an invite-only basis.

Its employees and associates can be rolled out to use their beta app.

However, customers of Paytm can request an invite either via their website or using their application on Apple’s iOS platform.

Users need to comply with ‘know your customer’ (KYC) norms to open accounts. The company aims to acquire 500 million customers by 2020.

Paytm is establishing KYC centres to help their customers. KYC is mandatory for opening an account.

The customers of Paytm payments bank will get four percent interest rate on their deposits. No minimum balance is required in the accounts.

The company assures the safety of customers’ deposits and also cashback deposits made by the customers.

For example, if a customer deposits ₹25,000 in his account, he will get ₹250 as cashback. There is no fee on online transactions.

Paytm will also provide current accounts to its merchants who are in million.

The company aims to set up 31 branches and 3,000 customer service points in the first year.

Paytm users can utilize their Digital Wallet services as they do in the same way prior to the launch of payments bank.

Virtual Rupay debit cards will be given to the customers immediately after the opening of the account and they will also be provided a physical card on request.

This card can be used to withdraw money from any ATM throughout the country.

Image Credit: Paytm Money Limited / CC BY-SA 4.0

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