After launching the Airtel Payments Bank in January this year, Finance Minister Arun Jaitley also formally inaugurated Paytm Payments Bank in the capital today.
Speaking at the event, Vijay Shekhar Sharma, Founder and CEO of Paytm stated, “India is at a cusp of a financial revolution. The demography and access to financial services will create a ton of jobs in the country and Paytm is very proud to be a part of this financial services revolution. Paytm Payments Bank will work towards creating a massive number of jobs in the long run.”
The bank will have zero charges on all online transactions and no minimum balance requirement and will offer free personalized RuPay digital debit card. It will also offer a 4-7% interest rate on savings account, and up to 7% on a linked sweep out Fixed Deposit. The company has planned an investment of $500 Mn in KYC (Know Your Customer) operations. It is setting up KYC centers across India to complete KYC for customers and make them eligible for a Payments Bank account.
Renu Satti, MD and CEO of Paytm Payments Bank added, “Paytm Payments Bank is the country’s largest mobile-first, technology-led bank. By virtue of reaching every nook and corner of the country, we will be able to bring the large un-served and under-served population to the mainstream economy. We are committed to offering the most transparent, safe and trusted banking to masses.”
A Quick Look At Paytm Payments Bank
Just last week, Paytm Payments bank had received yet another cash infusion from the parent company. Paytm’s parent company One97 Communications and Vijay Shekhar Sharma together invested $18.84 Mn (INR 122 Cr) in Paytm Payments Bank. This takes their total infusion in the payments bank to $61.78 Mn (INR 400 Cr).
The fund infusion follows the September cash raise wherein the Payments Bank had reportedly secured $9.3 Mn (INR 60 Cr) from Sharma and other existing investors. The development came at a time when the firm was gearing up to launch its own debit card.