Fintech company Paytm on Tuesday unveiled its payments bank becoming the first one to offer cashback on deposits. It aims to become the preferred bank for 500 million Indians by 2020.
Customers will also be offered zero charge on all online transactions and there would be no minimum balance requirement, the firm said in a statement here.
“This account has been designed to help achieve financial inclusion in our country, in line with Paytm’s mission of bringing half a billion Indians into the mainstream economy.”
The company aims to get people to move their money from cash to digital ecosystem, it said.
Paytm Payments Bank accounts would initially be available on an invite-only basis.
In the first phase, the company would roll out its beta banking app for its employees and associates. Paytm customers could request an invite by going to www.PaytmPaymentsBank.com or on the Paytm iOS app.
The company is setting up KYC centres across India to complete the know your customer operation for customers and make them eligible for a Payments Bank account.
This would be a mobile-first product with first-of-its-kind feature of cashback on deposits.
Every customer to open a Payments Bank account would get a cashback of Rs 250 as soon they bring deposits of a total of Rs 25,000 in their bank account.
The accounts would have zero balance requirement and every online transaction (such as IMPS, NEFT, RTGS — emergency fund transfers) would be free of charge.
For savings accounts, the company would also offer an interest of four per cent per annum. Paytm would also offer current accounts to its millions of merchants.
Speaking at the launch, Paytm Payments Bank Chairman Vijay Shekhar Sharma said: “The 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 assets.”
Paytm Payments Bank CEO Renu Satti said: “We are very excited to launch Paytm Payments Bank and bring financial services to the unbanked segment of Indians. Our ambition is to become India’s most trusted and consumer-friendly bank. Leveraging power of technology, we aim to become the preferred bank for 500 million Indians by 2020.”
Paytm is aiming to replicate its success in the banking sector and further drive cashless transactions with the Paytm Payments Bank.
“The current Paytm wallet will move to the Paytm Payments Bank in the same capacity, i.e. KYC wallet… Users will continue to be able to use their Paytm Wallet in the same manner as before,” it said.