Paytm Payments Bank, which is slated to start operations on May 23, said it will offer 4% per annum as interest on saving accounts deposits. The bank is targeting a customer base of 500 million customers by 2020. It will offer five free ATM transactions (in non-metro cities) per month, post which they will be charged ₹20 per ATM withdrawal.
‘Instant cashback’
“The first one million customers to open a Payments Bank account and reach a deposit ₹25,000 will get a cashback of ₹250 instantly,” the company said in a statement, adding that the account will have zero balance requirement and every online transaction will be free of charge.
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“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,” said Renu Satti, CEO, Paytm Payments Bank.
Airtel Payments Bank, which started operations in January this year, has announced introductory interest of 7.25% on savings account while India Post Payments Bank will be offering an interest rate of 4.5% on deposits up to ₹25,000; 5% on deposits of ₹25,000-₹50,000 and 5.5% on ₹50,000-₹1,00,000.
Paytm aims to open 31 branches and 3,000 customer service points in the first year. “The company is setting up KYC centers across India to complete KYC for customers and make them eligible for a payments bank account. This will be a mobile-first product with first-of-its-kind feature of cashback on deposits.”
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