Payments banks is a new model of banks conceptualised by the RBI and can accept a restricted deposit, which is currently limited to Rs 1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards.
It is offering savings and current accounts with a debit card and the ability to make fast and easy payments. It will soon enable you to access a range of financial services such as Insurance, Loans, Mutual Funds offered by our partner banks with the seamless Paytm experience.
Your current Paytm Wallet will now move to the Paytm Payments Bank Limited You continue to use the Paytm Wallet as before without any changes.
Movement to Paytm Payments Bank is required by RBI for all Paytm Wallet customers. However, If you choose not to continue to enjoy the benefits of your Paytm Wallet, please email at email@example.com
Initially, Paytm Payments Bank is available on an invite-only basis. In the first phase, limited version of the banking app will be launched for employees and associates. You can request an invite by logging onto www.paytmpaymentsbank.com or through the Paytm app.
Only KYC-enabled Paytm users are allowed to open a Paytm Payments Bank account
It is rolling out an annual interest of 4% for all savings accounts
Paytm Payments Bank will expand to 31 branches and 3,000 customer service points in the first year. It will also offer cashback of Rs 250 to customers depositing Rs 25,000.
Paytm Payments Bank will get an investment of Rs 400 crore in the first two years. Vijay Shekhar Sharma and One97 Communications, Paytm’s parent company, have already invested Rs 220 crore in the payments bank.
Paytm Payments Bank claims deposits will only be invested in government bonds that are used for the development of the nation.