Much talked Paytm Payments Bank is finally opened today with one branch at NOIDA. Currently PayTm is offering saving account on invitation to selected individual only. PayTm is generally inviting the customer from North India only. PayTm is planning to invest Rs 400 crore over the next two years to build its banking network across the country.
PayTm is offering 4% Interest on saving bank account which is much lower than competitor Airtel Payment Bank’s interest offering of 7.2%. Currently PayTm bank account is on invitation basis only through PaytmPaymentsBank.com or android or PayTm iOS apps.
PayTm bank is planning to expand its physical presence to 31 branches and 3,000 customer service points in the first year. The firm is targeting 500 million customers by 2020. PayTm is maintaining the customer acquisition cost of Rs125-150 crore over the next 12 months.
Paytm Payments Bank will offering all the services as usually provided by other banks like
- zero balance Account
- Online transaction facilities such as immediate payment service (IMPS), national electronic funds transfer (NEFT), real-time gross settlement (RTGS) etc.
- There will not be any charge on these services
- For savings accounts, the company will also offer an interest of 4% per annum
Twist is , already majority of banks are providing the services free of cost to all borrowers. Paytm Payments Bank is having advantage of covering the current account of their existing merchants but how would they turn up these accounts to generate turnover is important.
Paytm Payments Bank offering Rs 250 cashback to all the customer who keep Rs 25000 in their account. They are issuing Debit card i.e. PayTm debit card to their customer on annual fees of Rs 100. PayTm Debit card will issued with partnership with Rupay.
“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 Sharma, who is also chairman of Paytm Payments Bank.
The company said in a statement that it will roll out its beta banking app for its employees and associates and that Paytm customers can request an invite by going to PaytmPaymentsBank.com or on the Paytm iOS app.
Our ambition is to become India’s most trusted and consumer-friendly bank
The firm said it will move all active wallet accounts on the Paytm app to the payments bank.
But it will allow users, who do not wish to transfer their accounts, to opt out by a written request; accounts dormant for six months and having zero balances, Paytm will transfer wallets only when the user notifies it to do so.
In November, Bharti Airtel became the first payment bank to start operations followed by India Post Payment Bank.
Paytm Payments Bank plans to expand its physical presence to 31 branches and 3,000 customer service points in the first year.Rate much lower compared to Airtel’s 7.25% and India Post’s 5.5%. The first physical branch of Paytm Payments Bank will go live in Noida