Paytm will start operation of its payment bank from Tuesday. The company revealed that they plan to expand their business to 31 branches and open 3000 customer service points this year.
The bank is also offering a cashback of Rs 250 to the customers who deposits Rs 25000 in the payment bank.
Bank Gets Rs 400 Of Capital
The bank will get Rs 400 crore as investment fund in its initial year of operation. Vijay Shekhar Sharma, founder of One97 communications, acquires 51% of the stake whereas the remaining stakes are acquired by One 97 Communications. One97 and Sharma collectively put money of Rs 220 crore in the payment bank.
Company Already Informed The User What To Do
This Tuesday, The parent company of the digital payment arm Paytm, One97 Communication will transfer its wallet business to the Paytm Payments Bank. The company had already informed the customers that they can discontinue the service by sending a message before the launch date.
What Will Bank Offer
Renu Satti will head as CEO of the Paytm Payments Bank. It will require to maintain a zero balance and it will also offer you online transaction including, NEFT, RTGS, and IMPS without any charge. It will also offer you an interest of 4% per annum on saving account.
Users Will Get Cashback
The company also conveys that the first one million customers who open an account in this bank and whose deposit will reach Rs 25000 will get an instant cashback of Rs 250.
Its Application Will Soon Be Launched
Installments banks can acknowledge Rs 1 lakh for each account. As per the company, the bank will come up with its banking application in the beta stage for its representatives first. The payment bank will provide RuPay debit cards to its users. These cards can be used for 5 free ATM transactions in non-metro cities. Post these transactions, every customer will be charged an amount of Rs 20 for every transaction.
New Kind Of Banking Model
Sharma said that, “RBI has given us an opportunity to create a new kind of banking model in the world. We are proud that our customer deposits will be safely invested in government bonds, and be used for nation building. None of our deposits will be converted into risky asset”.