(MENAFN- KNN India) Paytm launches payments bank
New Delhi, May 23 (KNN) Paytm launched the first phase of its payments bank today and the company has plans to expand to 31 branches and 3,000 customer service points in the first year itself.
The e-wallet company plans to invest around Rs 400 crore to build its banking network over the next two years.
The bank will also offer a cashback of Rs 250 to customers depositing Rs 25,000 in the payment bank.
One97 Communications founder Vijay Shekhar Sharma personally owns a 51% stake in the payment bank, as per regulatory requirements, with the remaining stake owned by One97 Communications.
Sharma and One97 have together already invested about Rs 220 crore in the payments bank.
The company had informed its customers about the Payment Bank, allowing them the option to discontinue by sending a relevant communication to the company before the launch date.
Paytm Payments Bank will be headed by Renu Satti as CEO. It will have a zero balance requirement and will offer online transactions such as IMPS, NEFT, and RTGS free of charge.
The bank will offer an interest of 4% per annum for savings accounts. The company said that the first one million customers to open a payments bank account and reach a deposit of Rs 25,000 will get a cashback of Rs 250 instantly.
Payments banks can accept Rs 1 lakh per account. The bank will also roll out its banking app in the beta phase, initially for its employees, the company said.
The payments bank will also offer RuPay debit cards to consumers, which can be used for five free ATM cash withdrawals in non-metro cities per month after which they will be charged Rs 20 per withdrawal.
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