Paytm Payments Bank vs Airtel Payments Bank vs India Post Payments Bank: We review
Paytm Payments Bank that will begin operations today will offer 4% interests on deposits. All deposits will be held in government bonds however the company said it was equipped to offer loans as well unlike other payments banks.
The Paytm wallets will now move to Paytm Payments bank in the same capacity i.e. KYC wallet as KYC wallet and minimum KYC wallet as minimum KYC wallet.
In addition to this, Paytm announced an additional scheme for account openers.
“Every customer to open a Payments Bank account will get a cashback of Rs 250 as soon as they bring deposits of a total of Rs 25,000 in their bank account,” Paytm said.
Paytm said it had a 100 million active users on its portal currently which will be automatically transferred to the banks’ new facilities.
However, if customers have not used their wallets in the last six months with zero balance, they will be required to login again to move to the Paytm Payments Bank.
Its first branch would be opened in Noida and another 31 branches with 3,000 customer service points is the target for the company.
Paytm said it would invest Rs 10,000 crore over the next three years for 50 crore Indians to join the mainstream economy.
ALSO READ: Paytm receives $1.4 billion investment from SoftBank in latest funding round
Paytm Payments bank will also allow deposits of up to Rs 1 lakh along with offering savings and current accounts with a debit card.
Stacking up against the competition
Interest on deposits is at Paytm Payments Bank is much lesser than other payments bank, at 4%.
Airtel Payments bank is offering its customers 7.5% interest, India Post said it would provide 5.5% interest while Mobikwik said that it would offer up to 6% interest on deposits.
All the money in Paytm accounts will be invested in government bonds, the company said.
“Deposits will only be invested in government bonds that are used for the development of our nation,” Paytm said.
help@paytm.com or login to paytm.com/care to notify choice of opting out and redeeming your balance by one time transfer to your own bank account.
“Please indicate the Account Holder Name, Account Number and the IFSC Code of the bank where you wish to redeem the balance within 15 days of notifying your choice,” Paytm said.
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