Digital payment aggregator Paytm on Tuesday unveiled the Paytm Payments Bank, a first-of-its-kind bank that will offer cashbacks on deposits. Customers will also be entitled to zero charges on all online transactions and no minimum balance requirement.
Aiming to fuel the digitisation drive, 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.
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.
No minimum balance is required on the account and every online transaction (such as IMPS, NEFT and RTGS) will be free of charge. For savings accounts, the company would also offer interest at 4 percent per annum. The company is also offering current accounts to its millions of merchants.
"The Reserve Bank of India (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," said Vijay Shekhar Sharma, Chairman - Paytm Payments Bank.
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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, that is, 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.
"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," said Renu Satti, CEO - Paytm Payments Bank.