All you need to know about Paytm Payments Bank
On Tuesday, Vijay Shekhar Sharma, Paytm CEO officially launched the Paytm Payments Bank, which was already made available to the users in the Paytm app’s latest update. However the offline presence has gone live as well in addition to it’s online services with this launch. Mr. Sharma outlined the prospective growth of the bank and also briefed about it’s progress till now.
Are Paytm Payments Bank and Paytm wallet the same?
Although the same corporate entity owns both the Paytm Payments Bank and the Paytm wallet, these are two separate entities from a user’s perspective. Users can also use the mobile app to manage their bank account (if they have opened one) as well if they already have the mobile app installed for managing their wallet. The operation of the wallet is completely separate from the bank account, they don’t get linked. Hence users can operate the wallet without any change, even if they opt for creating a bank account.
The services of Paytm Bank was officially opened to the users in May this year. Although payments banks are similar to mobile wallets in ways they are managed digitally with ease, they can be quite different from each other. However, payments banks can get you interest on the money deposited in your account and offer debit cards.
Create Paytm Payments Bank account from your mobile app
Users can create a Paytm Payments Bank account quite seamlessly from their mobile app – all they need to do is sign in, request their account and then enter their address for completing the KYC. This step is not required if any user has already completed the KYC for Paytm wallet.
Attractive interest rates
Users can get an interest rate of 4% from Paytm Payments Bank, however the cashback offers have expired now. Addressing this during the launch, Sharma explained that the amount was actually 4% to 7%. Like any other bank, for savings account it’s 4% but there is also a swipe-in FD in which there is no breakage or creation fee. It can be looked at as a long term saving product that pays users at 7%.
Coming soon : “Paytm ka ATM”
He also mentioned that there are no charges or minimum balance requirements for online transactions. Initially Paytm had decided not to deploy ATMs, but on Monday, Sharma mentioned that the company is planning to set these up too. However the company will soon be starting “Paytm ka ATM”, where it will operate withdrawals and deposits by working with a business correspondent network.
Users will not be charged for depositing money into their Paytm account, which includes up to 3 withdrawals in metro cities and up to 5 withdrawals in non-metros via branches or ATMs. Paytm Bank is also planning to open 31 physical branches all over India.