Published: Tue, May 23, 2017
Hi-Tech | By Grace Becker

Paytm Launches Payments Bank, Aims To Acquire 500 Million Customers

Paytm Launches Payments Bank, Aims To Acquire 500 Million Customers

Airtel Payments Bank, which started operations in January this year, has announced introductory interest of 7.25% on savings account while India Post Payments Bank will be offering an interest rate of 4.5% on deposits up to ₹25,000; 5% on deposits of ₹25,000-₹50,000 and 5.5% on ₹50,000-₹1,00,000.

The first physical branch of Paytm Payments Bank will go live in Noida on Tuesday.

Paytm said that: "This investment will help us grow our leadership in the country's payment ecosystem, expand our user base and build a suite of financial services products for our customers".

Sharma will hold the majority share in Paytm Payments Bank, with the rest being held by Alibaba-backed One97 Communications.

Renu Statti who is now the vice president of business at Paytm has been appointed as the CEO of Paytm Payments Bank. The payments bank will subsume and manage the existing wallet service, and separate permanent bank accounts that will bring with them a slew of financial features.

How to open a Paytm payments bank account? .

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"This is the best value proposition we have offered", he said. With the launch, Paytm is transferring all wallets to the new Paytm Payments Bank.

The company will issue debit cards with an annual fee of Rs100 in partnership with Rupay. The company will benefit from the Japanese conglomerate SoftBank's over Rs 9,079 crore investment in Paytm - the largest fund infusion by a single investor in an Indian start-up. In 2015, the RBI had awarded in-principle approval to Sharma to set up a payments bank along with 10 others.

Digital payments firm Paytm launched a niche payments bank on Tuesday, aiming to acquire 500 million customers in the next three years, the company said in a statement.

The crucial transition to the Paytm Payments Bank can be expected to be a smooth affair, unlike the technical problems it faced post the November 8 demonetisation exercise, when users regularly complained of glitches with the app, and Paytm servers crashing during transactions. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. Our ambition is to become India's most trusted and consumer-friendly bank.

But it will allow users, who do not wish to transfer their accounts, to opt out by a written request; accounts dormant for six months and having zero balances, Paytm will transfer wallets only when the user notifies it to do so.

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