Payments Bank is a new bank model visualized by the Reserve Bank of India. These payment banks designed to help achieve financial inclusion by providing basic banking facilities in the country. One97 communication, parent company of Paytm got the approval from RBI and it announced Paytm Payment Bank. Lets see how it's going to effect its customers.
How is a Payments Bank different from a conventional bank?
Things which make them different are listed below -
- Payments banks cannot give loans or issue credit cards.
- Payments banks cannot take deposits in excess of Rs 1 Lakh per person.
- Money collected from depositors can be invested either in government bonds or can be deposited with other commercial banks.
What happens to existing Wallet?
Last date to opt out of Payment bank was 23 May 2017. Those who didn't opt out has been moved to the Paytm Payments Bank Limited in the same capacity i.e. KYC wallet as KYC wallet and minimum KYC wallet as minimum KYC wallet. You can continue to use the Paytm Wallet as before without any changes. Your Paytm login details continue to remain same.
Will my wallet get converted into a bank account?
No. your wallet will simply operate under the Paytm Payments Bank and continue to exist and function in the same manner as earlier. It will not earn any interest. To earn interest, you need to open a Paytm Payments Bank savings account. In case you are expecting refunds, your refunds will be given back to your wallet as earlier.
How can you open account with Paytm Payment Bank?
Currently, it is invitation based. You can request for an invite through www.paytmpaymentsbank.com or the latest Paytm app. They need to do KYC. Once complete, they can open Savings Bank account and you can deposit money and enjoy cashback and earn interest. It is also not mandatory to open account with Paytm as per RBI to use wallet.
What are the services offered by Paytm Payment Bank?
Currently it offers only savings and current account and cannot provide advance as of now. Payments Banks cannot offer financial products of their own, but partner with other banks. Once they partner with other banks, we may expect other financial services such as Loan, Insurance and Mutual Funds in future. It can issue cheque books and debit cards but not credit cards. Paytm Payment Bank has zero charges on online transactions, no minimum balance requirement and free virtual debit card.
What are other features and offers of Paytm Payment Bank?
- The bank offers 4% interest per annum on deposits while Airtel Payment bank offers 7.25%.
- It can accept cash deposits up to Rs 1 lakh per customer in a saving or current account.
- First one million customers to open an account with Paytm Payments Bank will get a cashback of Rs 250 instantly on depositing Rs 25,000
- Physical card will be provided on request for withdrawing cash from any ATM in the country at a nominal fee.
- In the first phase, Paytm will roll out the limited version of the banking app for our employees and associates.
- There will no charges for online transaction and accounts will be zero balance account.
No comments:
Post a Comment