Union Finance Minister Arun Jaitley on 29 November 2017 officially launched the 'Paytm Payments Bank', India's largest digital wallet firm.
Paytm Payments Bank aims to bring Indians into 'digital economy'. With the launch of the Bank, Paytm account holders can enjoy the benefits like zero-balance account, free IMPS, NEFT, RTGS, UPI transactions and a complimentary virtual Rupay cards for online transactions.
Paytm Payments Bank
• Paytm Payments Bank is India's first only mobile bank that offers zero balance accounts, zero digital transaction charges and free personalised RuPay digital debit card.
• Paytm Payments Bank has an annual subscription cost of Rs 100 plus delivery charges for RuPay digital debit card.
• Every online transaction (such as IMPS, NEFT, RTGS, UPI) through the bank is free of charge.
• The bank also allows customers to withdraw cash from their RuPay digital debit card from any ATM.
• Paytm Payments Bank account holders will earn an interest of 4 per cent on their savings every month.
• The account holders will also be offered a free insurance cover of up to Rs 2 lakh in case of death or permanent disability according to the terms and conditions.
Paytm launches Payments Bank
Concept of Payments Banks
• Payments Banks are a new set of banks introduced by the Reserve Bank of India (RBI) to extend deposit and payments services to millions of unbanked Indians.
• A customer can open a savings bank account in Payments Banks and have maximum deposits of up to Rs 1 lakh. However, these banks cannot lend money.
• On 19 August 2015, RBI gave in-principle licences to eleven entities to launch payments banks.
• Currently, India has four operating Payments Bank including Paytm Payments Bank. The other three are Airtel Payments Bank, India Post Payments Bank and Fino Payments Bank.
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