Paytm announced the launch of its payments bank in India, with a public notice in the newspapers and a blog post about the same. This comes after months of delays, but as per the notice, Paytm’s wallets business is being transferred to the newly incorporated entity, Paytm Payments Bank Ltd (PPBL). Paytm was earlier slated to begin operations around Diwali last year.
Paytm Payment Bank will be offering 4 percent interest rate and cashbacks on deposits, zero fees on online transactions and zero minimum balance. The company is targeting to acquire 500 million customers by 2020. Paytm has 218 million wallet accounts till now. These wallets will be shifted to the bank once the user notifies it to do so. However, the customer will need to make this communication before May 23. The company is setting up KYC centres across the country to help its customers in opening accounts.
Paytm Payments Bank will offer Rs. 250 cashback to customers depositing Rs. 25,000 to Payments Bank account. There is no minimum balance requirement for the bank account. Also, online transactions (such as IMPS, NEFT, RTGS) will not have any charges. Paytm payments banks can offer debit cards. According to Paytm’s website, physical services such as a chequebook, demand drafts, and debit cards, will be available from the Paytm payments bank, at a nominal fee. The Paytm bank will issue a Rupay debit card, which will be free, but it will charge Rs. 100 + delivery as an annual fee; a lost card replacement will also be Rs. 100 + delivery. A 10-leaves chequebook will also cost you Rs. 100 + delivery charges.