Paytm's Payments Bank is officially official now. Union Finance Minister Arun Jaitley inaugurated the service at an event in New Delhi on Tuesday. Paytm Payments Bank is notably India's mobile-first bank with which you will be able to make online transactions at zero cost. You also need not keep a minimum balance to maintain a Paytm Payments Bank account, unlike most of the other bank accounts.
The key motto of launching the Paytm Payments Bank is to build a new business model in the banking industry, notes Paytm. By launching the payments bank, Paytm is mainly focusing on bringing financial services to hundreds of millions of un-served or underserved consumers across the country, claims the company.
What is Paytm Payments Bank?
Paytm Payments Bank is a mobile-first bank with zero charges on all online transactions and no minimum balance requirement. The bank is designed in a way to achieve Paytm's mission of bringing half a billion Indians on to the mainstream economy, according to the company.
On opening a Paytm Payments Bank account, you will get a free RuPay digital debit card, with which you can withdraw money from your account from any and every ATM. For any query, you can reach out to any of the 100,000 Paytm ka ATM located across the country.
Founder and CEO of Paytm Vijay Shekhar Sharma believe that India is at a "cusp of a financial revolution" and "demography and access to financial services will create a ton of jobs in the country and Paytm is very proud to be a part of this financial services revolution." Sketching the roadmap for Paytm Payments Bank, Sharma says it will work towards creating a massive number of jobs in the long run.
Features of Paytm Payments Bank
The key highlight of the Payment Payments bank is that you need no minimum balance to maintain the account, like most of the other competitive banks require. Payment Payments Banks comes with no such hassle. The second highlight of the Payments bank is that you can make online transactions at zero fee. Let's take a quick look at the other features that Payment Payments Banks comes along.
-- Quick and paperless account opening.
--Paytm Payments Bank offers you interest on your savings account
--Every online transaction be it -- IMPS, NEFT, RTGS, or UPI will be free of cost
--On opening an account with Payment Payments Bank, you will get a free personalized RuPay digital debit card
--A Payment Payments Bank account holder can withdraw money from any ATM
--Access to personalised banking at more than 100,000 Paytm ka ATM locations across India
Future plans
In the long run, Paytm is targeting to achieve 500 million customers for its Payments Bank by 2020. In an interview with CNBC, Vijay Shekhar Sharma says, "It's a moon shot target. It's not worth aiming something lesser than that and I do believe that the number of resources and investments and the team that we are chasing we should be able to achieve 500 million customers for out Payment bank."
Paytm is also looking forward to invest around $500 million in KYC (Know Your Customer) operations. The company is in the process of setting up KYC centers across India to complete KYC for customers and make them eligible for a Payments Bank account.