Paytm begins Payments Bank operations, offers 4% interest on deposits
New Delhi : Digital payments firm Paytm on Tuesday officially launched their brand new product - Payments Bank, offering an interest rate of up to 4% and cashback on the deposits.
There will be no fees for online transactions with no minimum balance requirement.
Backed by Chinese firm Alibaba and Japanese conglomerate SoftBank, Paytm has invested nearly INR 400 crores and will be targeting 500 million customers by 2020.
Paytm Payments Bank’s cash withdrawal charges using the ATM is similar to any other major bank of the country. You will get five free transactions in non-metro cities and three free transactions in a metro city, after which you will be charged Rs20 for each cash withdrawal and Rs5 for non-financial transactions like taking out a mini-statement.
After Airtel and India Post, Paytm has become the third entity in the country with Payments Bank service.
The Paytm Payments Bank launch, getting delayed for some time, was earlier scheduled for February.
Paytm founder Vijay Shekhar Sharma had earlier said the company will focus on expanding into the banking sector this year.
"We want to expand the network across the country and increase the penetration. We want to expand this to deposits and current accounts. I think 2017 will be the year for us to expand into banking. We have to build distribution, reach and customer base," Sharma had told BTVi earlier.
Post-demonetisation, Paytm saw a surge in its customers owing to the digitisation push by the central government.