23 May 2017, India:
Paytm is all set to start its new venture and first physical branch of Paytm Payments Bank today in Delhi-NCR.
“We will first start the services in Delhi-NCR followed by the second phase of launch in other top metro cities,” said Vijay Shekhar Sharma, founder of One97 Communication Ltd, which owns Paytm, over a phone to The Mint.
Payments Bank is a new type of bank, licensed by the Reserve Bank of India. As a Payments Bank, Paytm can now accept customer deposits up to Rs. 1 lakh per customer in a wallet, savings or current account and offer other banking services like Debit Cards, Online Banking and Mobile Banking.
Related read- Bitcoin Surge Continues! Crosses $2100 Mark!
Paytm Payments Bank will offer 4% per annum as interest on saving accounts deposits. The bank is targeting a customer base of 500 million customers by 2020. It will offer five free ATM transactions (in non-metro cities) per month, post which they will be charged Rs. 20 per ATM withdrawal.
The company said in a prepared statement that accounts for Paytm Payments Bank will initially be available on an invite-only basis. Paytm will roll out the beta banking app for its employees and associates for now. Paytm customers can request an invite on the bank’s website or on the Paytm iOS app. The invite-only limitation will be applicable for the first six months.
“The RBI has given us an opportunity to create a new kind of banking model. 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 into risky assets,” said Vijay Shekhar Sharma, chairman of Paytm Payments Bank. Sharma owns 51% in the payments bank while the rest is owned by Paytm’s parent One97 Communications and its subsidiaries.
Paytm Payments Bank will continue to offer Paytm wallet. In addition, current accounts for businesses and interest-bearing savings accounts for individuals will be offered by a bank. It will also enable you to access a range of financial services such as insurance, loans, Mutual Funds offered by our partners with the seamless Paytm experience. (Image- The Mint, Bloomberg)
Also read- ATM Will be Shutdown Due to Ransomware Attack; If You’re Forwarding Such Messages, You Need to Read This!