Finally after one year of delay Paytm has launched its first bank in Noida on Monday. The bank which was scheduled to open last year due to some issues did not see the light. However, with a new chief executive officer on board Paytm has succeeded in launching its much-waited payment bank.
It is not the first company who has ventured in Payment banking area Airtel and India post has already opened their payment banks in the country.
However, Paytm as promised has kept its interest rate 4 percent for its customer which is exceptionally low as compared to Airtel and India post where latter is charging 7.3 percent of annual interest and former charges 5.3 percent respectively.
As of now, Paytm has opened its branch in Noida and it is contemplating to expand branches. It has planned that it would open 31 branches and 3000 services centers in this year.
However, initial accounts will be opened on an invitation basis. The bank is planning to roll out its beta banking application for employees and associates soon.
The company has announced that
“The first million customers to open accounts and have deposits of Rs 20,000 will get cash back of Rs 250 instantly. Accounts can be opened with a zero balance. All online transactions will be free of charge,” the company said.
The Company has sent 220 million messages in last 48 hrs asking people to open a bank account. However, pay has clarified its stand that those customers who are reluctant to open their bank account can opt out of it. They are required to send an email that they do not wish to open a bank account.
On Asked about the Paytm goal in future, the company CEO Vijay Shekhar Sharma said that he is indebted to RBI that it has given them an opportunity to create a new kind of Bank. He said that Paytm would invest its customer money in nation building instead of invest money in risky assets, Paytm would spend their money in purchasing government bonds.
Paytm is planning to expand its customer base by 2020 as they are eyeing to open 500 million accounts by 2020.
Paytm would also offer RuPay cards to customers. “We will offer five free ATM transactions (in non-metro cities) per month. After that, customers will pay Rs 20 per ATM withdrawal,” the company said.