Union Fin Minister inaugrated the new Payments Bank “Paytm Payments Bank” marking a first in the history of India’s financial services sector. Paytm Payment Bank becomes India’s first bank with zero charges on all online transactions and no minimum balance requirement.
Paytm Payments Bank – 4th Payment bank of India
Currently, India has four Payments Bank including Paytm Payments Bank. The other three operational ones are Airtel Payments Bank, India Post Payments Bank and Fino Payments Bank.
A Payments Bank is a differentiated Bank. A customer can open a savings bank account in them and have deposits of upto Rs. 1 lakh. These banks cannot however lend money to their customers.
This expands the horizon of financial inclusion in the country”, Jaitley said. Almost everyday some such initiative is being undertaken and leading to greater normalisation of the economy, Jaitley said.
Jaitley said that the chain reaction is visible now and the habit of dealing only in cash is gradually changing. “We are all nudged into system where convenience and security requires switchover”, Jaitley said.
Vijay Shekhar Sharma, Non-executive Chairman, Paytm Payments Bank, said that Paytm Payments Bank is working towards setting up physical ATMs in the country.
In last two years, Paytm has invested ₹5,000 crore in payments and financial services space (does not include commerce side), Sharma said. In the next two years, another ₹5,000 crore will be invested in the same segments, he added.
Features of Paytm Payments Bank
- Quick and paperless account opening
- Earn interest on savings account
- Zero-fee account, no minimum balance requirement
- Every online transaction (such as IMPS, NEFT, RTGS, UPI) will be free of charge
- Free personalized RuPay digital debit card
- Withdraw cash from any ATM
- Access to personalised banking at more than 100,000 Paytm ka ATM locations across India.