BENGALURU: Mobile payment and e-commerce company Paytm on Tuesday launched its payments bank with zero charges for online transactions and no minimum balance requirement. The company is also offering a four per cent interest per annum on deposits.
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 into risky assets.”
According to an official statement, 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.Presently, Paytm customers will be able to send a request for an invite by going to its website or through the Paytm iOS app.
For a customer, the current Paytm wallet will automatically move to the Paytm Payments Bank. Users will be able to use their Paytm wallet in the same manner as before. However, those who do not wish to continue with the payments banks will have the option of exiting by sending a mail to its customer care service.
The payments bank is looking at catering to 500 million customers by 2020. The company is setting up KYC centres across India and every customer who opens an account will get a cashback of Rs 250 once they bring a deposit of Rs 25,000. The company is also offering current accounts to merchants who are using Paytm.
The Paytm Payments Bank was originally slated to be launched last year but it was delayed as some of the crucial processes were not completed.
Paytm, India’s largest digital payments start-up, is funded by Alibaba and SoftBank Corporation of Japan.