The bank will offer cashbacks on deposits, zero fee on online transactions and no minimum balanceFocused on unserved and underserved Indians; target of 500m customers by 2020; Paytm Payments Bank to offer Rs. 250 cashback to customers depositing Rs. 25,000 to Payments Bank account; 31 branches and 3,000 customer service points to be rolled out in the first year
Paytm today unveiled the Paytm Payments Bank becoming the first bank to offer cashbacks on deposits. Customers will also be offered zero charges on all online transactions and no minimum balance requirement. This account has been designed to help achieve financial inclusion in our country, in line with Paytm’s mission of bringing half a billion Indians in to the mainstream economy. The company aims to get people to move their money from cash to digital ecosystem.
Paytm Payments Bank accounts will initially be available on an invite-only basis. In the first phase, the company will roll out its beta banking app for its employees and associates. Paytm customers can request an invite by going to www.PaytmPaymentsBank.com or on the Paytm iOS app.
The company is setting up KYC centers across India to complete KYC for customers and make them eligible for a Payments Bank account. This will be a mobile-first product with first-of-its-kind feature of cashback on deposits. Every customer to open a Payments Bank account will get a cashback of Rs. 250 as soon they bring deposits of a total of Rs. 25,000 in their bank account. The account will have zero balance requirement and every online transaction (such as IMPS, NEFT, RTGS) will be free of charge. For savings accounts, the company would also offer an interest of 4% per annum. The company will also offer current accounts to its millions of merchants.
Speaking at the launch, Vijay Shekhar Sharma, Chairman – 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, CEO – Paytm Payments Bank added, “We are very excited to launch Paytm Payments Bank and bring financial services to unbanked segment of Indians. 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”.
Paytm was the first Indian company to bet big on its zero cost QR Code-based payment solution that has today become synonymous with digital payments in India. The company is aiming to replicate this success in the banking sector and further drive cashless transactions with the Paytm Payments Bank. The current Paytm Wallet will move to the Paytm Payments Bank in the same capacity, i.e. KYC Wallet as KYC Wallet and minimum detail KYC Wallet as minimum detail KYC Wallet. Users will continue to be able to use their Paytm Wallet in the same manner as before.