Paytm, India’s largest digital payments company, on Tuesday (23 May) launched its much-anticipated payment’s bank. Renu Satti, who is currently a vice-president at Paytm, will head the payments bank operations.
The company said it will offer an interest rate of 4 per cent per annum on deposits.
Paytm Payments Bank Ltd aims to open 31 branches and 30,000 customer service points in its first year of operations. Paytm bank requires zero balance and every online transaction such as NEFT, UPI and IMPS will be free of cost.
With an aim to acquire 500 million customers in the next three years, the company will transfer its current consumer base of 218 million mobile wallet users to PPBL. Customers who do not wish to join PPBL will have to notify the company before 23 May and the wallet balance will be transferred to the bank account after the details are shared.
In case of no activity in the wallet for six months, the amount will be transferred after the customer’s consent. PPBL will accept deposits from individuals and small traders up to Rs 100,000 per account.
Paytm has already received Rs 218 crore of capital for PPBL from its founder and CEO Vijay Shekhar Sharma who owns a 51 per cent stake in the venture.
India’s financial technology market stands at an estimated $1.2 billion and is expected to double by 2020.
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