The Finance Minister has launched Paytm Payments Bank to expands the horizon of financial inclusion in the country. This is a good initiative to push towards digitalisation of the economy. On the occasion of launching the Paytm payments bank, Finance minister said that central government is continuously focusing on formalising the economy by reforming in structure through the substantial use of technology.
Currently, four Payments Bank including Paytm Payments Bank is working in India. The other three operational Payment banks are Airtel Payments Bank, India Post Payments Bank and Fino Payments Bank. According to the notification, Paytm has invested Rs. 5,000 crore in payments and financial services space (does not include commerce side) in the last two years.
However, Paytm has another planning to invest additional Rs. 5000 crore in the same operation within the next two years. In few month, Paytm company is expecting about 60 lakh merchants will be connected with them.
Paytm Payments Bank
By using this bank, a user can open a savings bank account in Payment bank and can deposit up to Rs. 1 lakh. It should be noticed, these Payment banks cannot lend money to their user. Payments bank provides zero balance accounts and zero digital transaction charges.
Besides, Paytm Payments Bank will also provide free personalised RuPay digital debit card to their users. The user can withdraw the cash from any ATM. In addition, the user will get free of charge online transaction such as IMPS, NEFT, RTGS, UPI. Below given the screenshot of schedule of charges to Paytm payments bank account.
As per the released notification, the Paytm company is planning to set up KYC (Know Your Customer) operation centres in the country to complete the KYC process as soon as possible. After the completing the process, the customers will be eligible for using a Payments Bank account.
Moreover, the user of Paytm payment bank account will get the cashback offers on deposits. If the user transfers the money more than Rs. 25,000 in the bank account, will get a cashback of Rs. 250 up to 4 times.