Paytm Payments Bank Launched, Offers 4% Interest; How To Apply?

Paytm launches Paytm Payments Bank and becomes the third payments bank in the country, after Airtel and India Post. The first physical branch of Paytm Payment Bank will go live in Noida today. Paytm received its final license to set up the payments Bank from the Reserve Bank of India (RBI) last week.

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Paytm Payment Bank

Renu Satti has been named the CEO of Paytm Payments Bank. The service was initially available on an invite-only basis. Paytm rolled out the beta version of the banking for its employees and associates.

Paytm has raised another round of funding from SoftBank, the Japanese conglomerate has invested over Rs 9,079 crore. This is the largest fund invested by a foreign firm in an Indian startup till now.

Paytm Payments Bank Features

• The service doesn’t have any minimum account balance maintenance restrictions. So, you won’t be charged if you don’t any money in your account.
• The maximum money that you can deposit is capped at Rs 1,00,000 (one lac). And Paytm will pay you 4% percent as interest.
• Unlike any other standard banks, Paytm will not charge for transactions through IMPS, UPI or NEFT.
• The service will provide you a Rupay debit card for free and, of course, cheque book initially, but from next year onwards, Paytm will charge Rs 100 + delivery charges for the debit card and for lost card replacement and additional cheque book.
• ATM transaction charge will be free to five transactions in non-metro cities, whereas in metro cities only get three free cash withdrawals, after which for every withdrawal will be charged at Rs 20 per transaction, whereas the mini statement will be charged at Rs 5 per transaction.
• Email statements and online passbook will be offered for free but the physical statements will be charged at Rs 50, along with additional delivery cost.
• Last but not least, existing wallets will be transferred to Paytm Payments Bank, but the accounts will remain as two separate entities.

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How To Apply For Paytm Payment Bank?

• Firstly, you need to get an e-KYC done with Aadhaar linking and biometrics authentication.
• As mentioned above, this is an invite-only service (for now), so, log on to paytm.com/bank to get an invite.
• After login, you will see a page where you can get the invite. Click on ‘Request An Invite’, if you already own a Paytm Wallet, you can log in with the same credentials.
• Go ahead to ‘Secure Login’ and you will receive an OTP on your registered mobile number. Enter the OTP to verify login. That’s it! you will be registered to get a Paytm Payments Bank invite.

Paytm plans to expand the Paytm Payments Bank (physical presence) to 31 branches and 3,000 customers service points in the first year. The company is targeting 500 million customers by 2020.