Paytm Payments Bank to operate from today

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Paytm will operate as paytm Payments Bank from Tuesday
Paytm will operate as paytm Payments Bank from Tuesday

Bengaluru : Paytm will operate as paytm Payments Bank from Tuesday. It will expand to 31 branches and 3000 customer’s service year in the initial first year, said by the company.

The Paytm Payments Bank will also offer a cashback of Rs.250 to customers depositing Rs. 25,000 in the payments bank.

It is going to get Rs. 400 crore as investment in the first two year of operations.

The founder of One97 communications Vijay Shekhar Sharma himself owns 51% stake in the payment back. This is as per the regulatory requirements, while the remaining stake is owned by One97 Communications.

Vijay and One97 jointly have already invested about Rs. 220 crore in the payments bank.

One97 Communications, the parent company of Paytm, will transfer the wallet business to Paytm Payments Bank on Tuesday. Also the company has already informed all its customers with a prior relevant communication before the launch date with a option to discontinue.

The Paytm Payments Bank will be headed by Renu Satti as CEO. T will have a zero balance requirement and will offer online transactions such as IMPS, NEFT and RTGS free of charge. The Paytm Bank will also offer an interest of 4% per annum for savings accounts. Also the first one million customers to open a payments bank account and to reach a deposit of Rs. 25,000 will get a cashback of Rs. 250 instantly.

The company said that the payments bank can accept up to Rs. 1 Lakh per account. And exclusively for its employees it will roll out its banking app in the best version.

Payments Bank will also offer RuPay debit cards to consumers, which can be used for five free ATM cash withdrawals in non-metro cities per month, and after that they will be charged Rs. 2o per withdrawal.  

"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 asset," said Sharma in a statement.