Paytm has launched its payments bank on Tuesday targeting 500 million customers by 2020. This Paytm Payments Bank offers 4 percent interest rate, cash back on deposits, no minimum balance requirement and zero fees on online transactions.
Paytm has spent an initial investment of Rs. 400 crores to build it network in the next two years. Japanese conglomerate SoftBank and Chinese firm Alibaba backs the Paytm Payments Bank. Paytm claims the third entity in India to launch payments bank after Bharati Airtel and India Post.
“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,” says, Vijay Shekhar Sharma, Chairman, Paytm Payments Bank.
All the digital wallets will be shifted to the Paytm Payments banks post the launch.
How to open a new account in Paytm Payments Bank?
Customers can open a new account by logging in to www.paytmpaymentsbank.com or download the Paytm Payments Bank iOS app. Customers should submit e-KYC (Know your customer) documents. Paytm is setting up KYC centers across India to make the Paytm Payments Bank account opening process easy.
Existing digital Paytm Wallet customers will be transferred to the Payments Bank automatically after the launch. Customers have no option to choose to switch or not.
“Our ambition is to become India’s most trusted and consumer-friendly bank. Leveraging the power of technology, we aim to become the preferred bank for 500 million Indians by 2020.We will invest over Rs. 400 crores over the next two years to build banking network across the country,” says, CEO Renu Satti, Paytm Payments Bank.
At an earlier stage, Paytm Payments Bank accounts will be available on an invite-only basis. Later, its employees and associates will get the beta version of the banking app. The company plans to roll out 31 branches, and 3,000 customer service points the first year after its launch. Users will also get RuPay debit cards to withdraw cash from any ATM in the country.