The biggest digital payments player Paytm announced today the launch of its payments bank in India. Now, after the launch of the Paytm payments bank, there is three payments bank in the country, counting Airtel payments Bank Ltd, India Post Payments Bank. The Payments bank is the differentiated bank that allows the customers to open a savings account for a deposit amount of up to Rs 1 lakh. At present, the Paytm Payment Bank is presenting the service by invitation only.
Request your Paytm Payments Bank invite.
— Paytm Payments Bank (@PaytmBank) May 23, 2017
All about PayTM Payment Bank
Cash withdrawal charges
In most of the payment banks, there is a cash withdrawal charge. The cash withdrawal charges in Paytm payment bank’s using the ATM would be similar to any other main bank of the country. In non-metro cities, you will get five free transactions and three free transactions in the metro cities, and after this, you will be charged Rs 20 for each withdrawal and Rs 5 for non-financial transactions like getting a mini statement. You will have to pay Rs 50 plus delivery charges and additional service tax will also be applicable if and only if you need a physical statement from the bank. If you withdraw cash from a banking point, the Airtel Payments Bank will charge 0.65% of the withdrawal amount.
On the other hand, India Post Payments Bank will not charge you any fees if you are withdrawing money using an ATM card at India Post Payments Bank ATM or Punjab National Bank (PNB) ATM. However, if one withdraws from some other bank’s ATM, then you have to pay as per the standard charge of Reserve Bank of India (RBI) rules (First 5 free in non-metro cities and first 3 in metro cities). In case, you want to use the doorstep banking in which the bank delivers the cash at the customer’s doorstep, then the charges of a cash deposit and withdrawal charges would range between Rs 15 and Rs 35, which also depends on the amount.
— Paytm (@Paytm) May 18, 2017
The digital payments player Paytm’s newly launched Paytm Payments Bank is proposing 4% interest rate on savings account, whereas its existing competitor in the market Airtel Payments Bank is providing 7.25% interest on deposits in a savings account, where India Post Payments Bank is offering 5.5% interest rate on deposits depending on the amount. The interest rate of Paytm Payments Bank’s is in order with all the large commercial banks, including Bank of Baroda, ICICI Bank and State Bank of India in which it will continue to offer a 4% interest rate on saving account deposits. While coming to the smaller banks like Yes Bank Ltd and RBL Bank Ltd, the offer of interest rate would be between 5.5-7.1%, depending on the amount. The India Post Payments Bank is offering three types of accounts, counting one as the regular and two others as basic savings bank deposit accounts.
Online Fund Transfer
The Paytm Payments Bank will be applicable of transacting through online services such as Immediate Payment Service (IMPS) and National Electronic Fund Transfer (NEFT) and Unified Payment Interface (UPI) free of cost. The India Post Payments Bank will charge a fee if and only if the transaction happens at the branch or as part of doorstep banking; Rs 2.5-5 in NEFT, IMPS transaction will cost Rs 5, whereas if one is doing the transaction through using mobile banking, NEFT is absolutely free. However, you have to pay Rs 4 for IMPS transaction. In the Airtel Payments Bank, it charges 0.5% of the transferred amount if you have transferred funds from the Airtel Payment Bank to another bank account with the help of internet banking, Unstructured Supplementary Service Data (USSD) or mobile app. The fund transfer is free of cost within the bank.
The Paytm Payments Bank will provide you Rupay debit card at an annual subscription cost of 100 Rs plus delivery charges. If and only if you lost your card, you will have to replace your card by paying Rs 100 again plus delivery charges. The bank will also provide you a cheque book at Rs 100 plus delivery charges. While talking about the India Post Payments Bank, they are providing debit cards for absolutely free, but you have to pay 100 Rs in a case of theft or loss of the card. It also charges an annual 100 Rs as the maintenance fee, which starts from the second year onwards. There are some limitations in withdrawing cash from the ATM for India Post Payments Bank like a maximum amount of Rs 10,000 per transaction one could withdraw and Rs 25,000 maximum amount per day, depending on the account you hold with the bank.
Paytm statement and words from its chairman and CEO
The digital payments player said in its official statement that “We are delighted to let you know that we have received the final license for Paytm Payments Bank from RBI and are in the process of launching on 23 May 2017. Renu State will be the CEO of Paytm Payments Bank. The core mission of the Paytm Payments Bank will be to cater to the requirements of the un-served and under-served communities of India and bring them to the mainstream economy. We are looking forward to making Paytm Payments Bank available to all our users very soon.”
The CEO of Paytm Payments Bank Renu Satti said, “We are very excited to launch Paytm Payments Bank and bring financial services to the unbanked segment of Indians. Our ambition is to become India’s most trusted and consumer-friendly bank. Leveraging the power of technology, we aim to become the preferred bank for 500 million Indians by 2020.”
The Chairman of Paytm Vijay Shekhar Sharma said, “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 assets.”