Finance Minister Arun Jaitley inaugurated Paytm Payments Bank today at an event in New Delhi. While the digital banking service by the mobile wallet company had already been introduced first in September, today’s announcement marks a more formal roll out.
Paytm Payments Bank boasts a number of benefits including zero balance feature, Rupay debit card facility, no cost transactions, and a new sweep-out FD service.
Paytm’s digital payments arm currently stands at 28 crore registered users with 50 lakh merchant users. Speaking at the launch event, Paytm founder Vijay Shekhar Sharma said that the Payments Bank will make 1 crore small and large businesses eligible for loans from as low as Rs 2,000 up to Rs 200,000 by the next year.
Paytm was established in 2010, however, the growth became palpable after demonetization. With the integration of UPI in June, the progress significantly improved. Earlier this month, Paytm integrated UPI-based BHIM platform within its core app to expand accessibility, and gain more users. Today Paytm boasts 250 crore annual transactions worth Rs 80,000 in value.
Going forward Paytm will pour $500 million in KYC operations to make more people eligible for the Payments Bank service.
Meanwhile, lauding Paytm’s efforts at accelerating the growth towards a digital economy, Jaitley said the progress made by Paytm is, “a tribute to entrepreneurship in India”. He further added that until recently half the country did not access to banking systems. However, with newer services such as Paytm, “A new challenge in the history is being written as every day some such initiative is taking place.”
Here’s a look at the top features of Paytm Payments Bank.
Paperless account opening
One of the prime features of the Paytm Payments Bank is that it lets you open an account in just a few minutes, without you having to step out of your house. From the app itself, you can create an account on the bank, put in necessary details such as Aadhaar number and nominee details, and with a single tap, you can start using the digital bank.
Paytm Payments Bank allows you to maintain your account without any minimum balance pre-requisite. Unlike other banks, you don’t need to maintain a minimum monthly balance to keep the account operational.
Free online transactions
If you transfer money using digital methods such as IMPS, NEFT, RTGS, or UPI via your Payments Bank, you will not be charged anything. All the online transactions through the account will be free of cost.
RuPay debit card
With Paytm Payments Bank, you can also avail the benefit of a personalized RuPay digital debit card free of cost. This card can be used across ATMs to withdraw cash.
Paytm ka ATM
Paytm ka ATM refers to any merchant and corner stores which have been turned into cash withdrawal points and use Aadhaar as the base, such as fingerprint or iris sensors, to authenticate withdrawal. For the personalized banking experience, Paytm aims to establish 1 lakh such points across the country by March 2018.